Basis Asks Blackstone For Help In Sub-Prime Mess

Jul 24 2007 | 11:11am ET

Not everyone is unhappy about the growing sub-prime debacle: In fact, the Blackstone Group has made it a cottage industry.

Australian hedge fund Basis Capital Fund Management, which last week said it could see assets fall by half due to losses in sub-prime investments, has hired the New York-based private equity giant to advise it about the crisis. Blackstone is already advising the most high-profile hedge fund victim of the sub-prime markets, Bear Stearns.

Sydney-based Basis said that Blackstone will help it “prevent adverse pricing and selling of assets.” Last week, it warned investors that its Yield Alpha Fund, already down 14% last month, could be halved in value if lenders seize and sell off its assets at distressed prices. Both the Yield fund and its Aust-Rim Opportunity Fund—down 9% in June—had invested in the risky unrated portions of collateralized debt obligations.


In Depth

MiFID2 For U.S. Firms: Key Questions Answered

Feb 27 2017 | 4:54pm ET

The January 2018 deadline for implementation of the EU’s mammoth MiFID2 regulations...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of