AI market round up: Distressed RMBS funds build their portfolios
Euromoney Limited, Registered in England & Wales, Company number 15236090
4 Bouverie Street, London, EC4Y 8AX
Copyright © Euromoney Limited 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
CAPITAL MARKETS

AI market round up: Distressed RMBS funds build their portfolios

An increasing number of hedge funds are cashing in on the opportunities presented in the distressed mortgage-backed securities sector as banks try to offload their sub-prime exposure. Citadel snapped up for a mere $800 million E*trade’s $3 billion ABS portfolio, which comprised mortgage-backed securities and CDOs. About 60% of the assets were rated double A and higher. Along with Goldman Sachs, Waterfall Asset Management and Solent Capital, hedge fund investments in distressed mortgage-backed securities and CDOs are believed to have surpassed $10 billion since July.

Gift this article