Wednesday, 17 September 2014
Last updated 17 hours ago
May 18 2011 | 11:57am ET
Citigroup can't win for losing. It apparently can't win for winning, either.
The banking giant said a mortgage hedge fund that almost exclusively manages its own capital is up 16% this year. The only problem is that, under the Volcker rule, it's either got to raise a lot more money for the $395 million vehicle, get rid of it or pull its own currently very profitable capital.
The bank may seek to do the former, Bloomberg News reports, prior to the implentation of the Volcker rule, which is likely several years off.
The Mortgage/Credit Opportunity Fund was launched in 2008 by former Halcyon Asset Management principal Rajesh Kumar. Citi seeded the fund, which invests in both commercial and residential mortgage bonds, with $200 million.
The fund returned 17% in the last eight months of 2008, 23% in 2009 and 26% last year.
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…
The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?