Friday, 27 March 2015
Last updated 3 hours ago
Apr 9 2013 | 10:15am ET
Cerberus Capital Management is planning a new fund to invest in commercial mortgage-backed securities, including the riskiest tranches of the derivatives.
The firm sought to sell the fund and strategy at a dinner in Manhattan last month for prospective investors. Cerberus said it believes that the CMBS Opportunities Fund could produce returns as high as 35%, The Wall Street Journal reports.
U.S. CMBS issuance is roaring back after five years of muted activity in the wake of the financial crisis. The first quarter alone saw almost $23 billion in issuance, almost half the total issuance from last year. In an investor presentation, Cerberus noted that "bad habits are returning."
In spite of that, and the risks, Cerberus told investors that it believes it can profit from CMBS. The new fund would buy both subordinated CMBS while simultaneously shorting the market with indices.
Cerberus' existing commercial-mortgage bond portfolio returned 47% last year and is up 11% this year.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…