Tosca Considers Bank Lending

May 6 2010 | 1:05pm ET

Toscafund Asset Management may begin lending capital to banks as part of its expansion into the European secondary mortgage market.

The London-based firm was already planning to raise a second £250 million fund to buy mortgage-backed bonds and other securitized mortgage securities, as well as distressed mortgages. Now, the firm is considering getting into the business of bank lending, insuring riskier parts of a bank’s equity structure, The Independent reports.

“There is a social agenda with the funds, as the strategy allows banks to free up capital for new lending, which is helpful for the economy, and debt forgiveness for individual borrowers, which increases their disposable income,” Charles Schrager, who heads Tosca’s mortgage funds, called Mod, told the newspaper.

“You won’t find Tosca’s representatives knocking on the door to repossess,” he added. “That’s not what we are about. Although we hope to make strong returns for our investors, this whole operation has a social agenda at its core.”


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of