Carlyle fund gets default notice
Carlyle Group’s publicly-traded mortgage bond fund failed to meet margin calls and said it received a notice of default.
By Agencies |
SAN FRANCISCO: Carlyle Group���s publicly-traded mortgage bond fund failed to meet margin calls and said it received a notice of default.
Carlyle Capital missed four of seven margin calls yesterday totaling more than $37 million, the Guernsey, UK-based fund said today in a statement. The fund expects to get at least one more notice of default related to the margin calls.
The collapse of the subprime mortgage market has prompted investors to flee all but the safest forms of debt, leading to the failure of hedge funds including Peloton Partners.
The Carlyle fund raised $300 million in July and used loans to buy about $22 billion of AAA rated so-called agency mortgage securities issued by Fannie Mae and Freddie Mac.
Carlyle Capital missed four of seven margin calls yesterday totaling more than $37 million, the Guernsey, UK-based fund said today in a statement. The fund expects to get at least one more notice of default related to the margin calls.
The collapse of the subprime mortgage market has prompted investors to flee all but the safest forms of debt, leading to the failure of hedge funds including Peloton Partners.
The Carlyle fund raised $300 million in July and used loans to buy about $22 billion of AAA rated so-called agency mortgage securities issued by Fannie Mae and Freddie Mac.
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