Sunday, 21 December 2014
Last updated 9 hours 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.