<$BlogRSDUrl$>

Wednesday, April 18, 2007


HEDGE FUND IN $2.9B SUBPRIME DEAL By RODDY BOYD - Business - New York Post Online Edition 

HEDGE FUND IN $2.9B SUBPRIME DEAL By RODDY BOYD - Business - New York Post Online Edition

It looks like hedge funds are beginning to take over the subprime mortgage world

Ellington Capital Management is in the process of finalizing an agreement with Fremont General Corp. to buy $2.9 billion worth of loans and the distressed lender's real estate business, including its mortgage bond investments and loan origination platform.

Last month, Fremont shuttered its subprime unit after the Federal Deposit Insurance Corp. issued a cease-and-desist order to the company because of poor underwriting standards.

Ellington, which has $4 billion in assets, signed a letter of intent for the purchase, said Michael Vranos, the fund's founder and chairman.

"Taking over a lot of structure like this is new, but we feel comfortable with the portfolio and with our risk management ability," Vranos said.

|




This page is powered by Blogger. Isn't yours?