New York-based Belstar Group has launched a pair of hedge funds to invest in government-financed asset-backed securities.
The Belstar Credit Fund and the Belstar Altair Credit Fund will participate in the Term Asset-Backed Securities Loan Facility program, which finances the purchase of eligible highly-rated securities.
Under TALF, the Federal Reserve Bank of New York will provide up to $1 trillion of non-recourse loans available to eligible borrowers of triple-A-rated debt collateralized by eligible consumer and small business loans. The loans are also non-mark-to-market and pre-payable at any time.
New hire Simina Farcasiu, fomerly of Bear Stearns and JPMorgan Asset Management, will be the senior portfolio manager for the funds.
“These opportunities arise out of unprecedented dislocation in the credit markets,” said Farcasiu. “Without the overhang of legacy assets or other conflicts, the Belstar Group has built a TALF-platform that effectively addresses today’s markets.”