SEC Eyes Carrington Mortgage Deal

Jun 18 2014 | 3:03pm ET

Hedge fund Carrington Holding’s move into mortgage-servicing is getting some unwanted attention seven years after the deal.

The Securities and Exchange Commission is investigating Carrington’s 2007 purchase of New Century Financial’s mortgage-servicing business following the subprime lender’s collapse. The regulator began subpoenaing documents from Carrington in the fall, The New York Times reports.

In particular, the SEC wants to know about how Greenwich, Conn-based Carrington financed the $188 million deal, as well as about the servicing business itself. Carrington used preferred equity securities to refinance part of the purchase, last year replacing them with $530 million in unsecured Irish Stock Exchange-listed securities that come due in 2021.

Carrington disclosed the probe to investors in November, but it has not previously been publicly reported.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR