Thursday, 27 November 2014
Last updated 1 day ago
May 4 2011 | 10:26am ET
Subprime mortgage-backed securities, which helped bring the world’s financial system to its knees in 2008, may be ready for a comeback.
Josh Friedman, co-founder of the Los Angeles-based hedge fund Canyon Partners, told a Beverly Hills audience Tuesday that the securities offer potentially high returns and there’s little competition for them.
According to Reuters, Friedman, while participating in a panel discussion at the 2011 Milken Institute Global Conference, said "There are hundreds and hundreds of players in the market searching for yield. The nice thing, structurally, about this market is there haven't been natural inflows into the market. It's nothing but sellers,” said Freedom.
Canyon owns about $4.5 billion worth of subprime mortgage-backed securities which trade around 40 cents on the dollar. Friedman estimated the market for them at $1 trillion. But Friedman warned that investors should research the securities before making any purchases.
"There's a wealth of information in each of these securitizations," he said.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...