Another Subprime Casualty

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Good morning, and happy Independence Day. There’s no telling whether this is a big problem or a little one, but another hedge fund burned by subprime mortgage investments is in trouble, according to the New York Times.

The N.Y. Times felt it was worth a bylined story, so we think it’s worth a post: ‘In another sign that troubles in the mortgage market are spreading, a prominent hedge fund that specializes in bonds backed by home loans has suspended redemption requests by investors.’

More: ‘The Horizon ABS Fund managed by John Devaney, a well-known trader of asset-backed securities who is based in Florida, said [July 3] that it made the decision to block withdrawals after one investor who accounted for about a quarter of its $650 million in assets sought to leave the fund.’

Thoughts? Insights?
Photo Credit: Reuters