Hedge Fund Given Control For Buying Low-Rated CMBS

Aug 19 2010 | 2:18pm ET

Hedge fund H/2 Capital Partners will be calling the shots on a portfolio of commercial mortgage-backed securities after agreeing to buy the riskiest tranche of the offering.

The deal with Stamford, Conn.-based H/2 is part of a $1 billion CMBS sale, the year’s largest. H/2 is buying the bottom $50 million of the securitization, and in exchange will have primary authority over the troubled loans, Bloomberg News reports.

By contrast, Goldman Sachs and Citigroup gave those rights to buyers of the highest-rated tranches in their $788.5 million debt sale earlier this month.

H/2 will get a 14% yield on the 10-year investment, in the unlikely scenario that the loans suffer no losses.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.