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Mortgage market targeted by hedge funds
Philippines News.Net
Tuesday 5th August, 2008
Dozens of hedge funds and private equity groups have been quietly building equity in the beaten-down mortgage market in the US.
Tens of thousands of distressed loans and foreclosed properties have
been sold to hedge funds, run by former Wall Street and lending
industry executives.
The hedge fund managers claim they can do a better job than banks or
other investors of modifying mortgages at terms that consumers can
afford.
Merrill Lynch for example, has sold mortgage-linked investments once
valued at $30.6 billion for just $6.7 billion to Lone Star Funds, a
distressed-debt investor in Dallas.
New Jersey-based Biltmore Capital Group has dedicated itself to buying up to $100 million in mortgage debt each year.
In many cases the hedge funds obtain the property through foreclosure
and try to sell it off in return for not pursuing the outstanding
mortgage balance.
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Comments on this story
` ~galljdaj+
08-05-08, 06:55 AM |
Mortgage market targeted by hedge funds
There are the skinners, and following them are the carcass users. Even bankruptcy has its profiteers!
But there are always the largest group thar looses!
They loose to 'writedowns' and 'percentage takers' called strip miners.
Also known as Our Political Leaders and Our Business Leaders!
Very much needed is the Drum Party of Citizens First!
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` ~galljdaj+
08-05-08, 10:09 AM |
An example:
A Florida luxury home building corporation has just announced Bankruptcy.
Recently a man named ICON attempted to purchase the Corporation, failed, but still became the CEO.
Icon had offered $60+ per share to Purchase the corporation and the last stock offer was under 1 dollar.
Icon just negoiated a $50 million dollar loan to restructure the corporation under bankruptcy!
Who is gainning and how many loosers?
These are the Leaders! The Courts, the Bankers, and the very
wealthy, are all doing very well, while the stripminning continues to
make the majority, loosers!
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