FHA and Investor Specialist

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Bear Stearns Hedge Funds woes: The end or tip of the iceberg?

Recent reports of Merril Lynch seizing the assets of a Bear Stearns hedge fund caught quite a bit a attention.  It seems Bear Stearns had 2 separate hedge funds which had invested long in the ABX Index, which is filled with mostly subprime securitizations.  Another problem surfaced when the value of these assets was significantly less than originally thought.  It appears values were placed on assets that no one had ever really been forced to sell, and thus the values were just educated guesses.  I am by no means an expert in securitizations, etc.  Does anyone have the ability to shed some light on the Bear Stearns/merril Lynch situation?

 

Michael Byrne

Mortgage Specialist

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0 comments • Michael Byrne • July 21 2007 03:13PM

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