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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note