Wednesday, 5 August 2015
Last updated 7 hours ago
Aug 11 2014 | 5:13am ET
Months after unloading its holdings of agency mortgage bonds, 400 Capital Management is jumping back in, taking advantage of a recent sell-off.
400 chief investment officer Chris Hentemann said the firm began buying Fannie Mae and Freddie Mac’s new risk-sharing bonds last week. The move came after the bonds dropped about 10% over the past three months.
“We’re dipping our toes back in,” Hentemann told The Wall Street Journal. “It was a pretty significant move, and leaves pricing more closely aligned with the credit risk we are buying.”
400 had been buying such bonds since the middle of last year. But it took advantage of the nearly year-long rally to sell its entire holding earlier this year.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…