Wednesday, 30 July 2014
Last updated 2 hours ago
Apr 27 2010 | 2:38am ET
Toscafund Asset Management is bidding to become one of the largest players on the European secondary mortgage market with a pair of new funds investing in the space.
The London-based hedge fund has already closed one fund focused on British subprime mortgages with £250 million. It’s now hoping to raise another £250 million for a second fund that it plans to launch this summer.
Tosca’s first mortgage fund is off to a fast start, on track to return 22% to investors this year, the Financial Times reports. The Tosca Mod Fund bought up U.K. subprime mortgages from banks seeking to unload them at a discount last summer, often grabbing the highest-quality mortgages of the lot. The fund paid roughly 60% of face value for the mortgages.
The second fund, Tosca Enhanced Mod, will buy mortgage-backed bonds and other securitized mortgage securities in addition to distressed mortgages, according to the FT, targeting returns of 8% to 12% annually over a five-year period.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…