Saturday, 30 August 2014
Last updated 1 day ago
Mar 13 2008 | 10:43am ET
The end is near for Carlyle Capital Corporation. The mortgage hedge fund yesterday said that although it has been working diligently with its lenders, it has not been able to reach a “mutually beneficial agreement” to stabilize its financing.
Therefore, it expects that its lenders will promptly take possession of almost all of the Company’s remaining assets, which are U.S. government agency AAA-rated residential mortgage-backed securities.
During the past week, Carlyle received margin calls in excess of $400 million and in total, through March 12, the Carlyle Group affiliate has defaulted on approximately $16.6 billion.
The hedge fund’s parent pumped in $250 million in credit and loan facilities and was prepared to provide substantial additional capital if the fund could successfully refinance with its lenders. But the fund said negotiations deteriorated late yesterday when, among other things, the pricing service utilized by certain lenders reported a drop in the value of the RMBS collateral, which is expected to result in additional margin calls today of approximately $97.5 million.
“Overall, it has become apparent…that the basis on which lenders are willing to provide financing against the company’s collateral has changed so substantially that a successful refinancing is not possible,” according to the firm.
Carlyle Group management has a 15% stake in the hedge fund.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...