Merrill Sells Off Bear’s Hedge Fund Assets

Jun 21 2007 | 1:03pm ET

Merrill Lynch yesterday reportedly sold off securities from Bear Stearns’ High Grade Structured Credit Strategies hedge funds in the broader markets and plans to start selling derivatives today.

Merrill Lynch did not sell all of the estimated $850 million of securities it put up for sale but sold enough assets to cover its positions, Reuters reports. Other lenders including JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group are reportedly in the process of unwinding their positions in the hedge funds instead of auctioning off the assets.

Bear’s hedge funds, which once managed some $20 billion in assets, have lost billions in securities backed by subprime mortgages.  Over the last several weeks, the funds have sold off some $4 billion in mortgage-backed bonds to meet margin calls and investor redemption demands.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...