Financial institutions have also been disappearing, especially a number of hedge funds, the most recent being this past week: Peloton, a London-based hedge fund specializing in asset-backed bonds.
FT.com / In depth - Peloton Partners in $2bn assets sale
Rumours of the crisis at Peloton's ABS fund, named best new fixed-income hedge fund last month, helped drive the high-quality mortgages in which it was invested to all-time lows this week as traders prepared for $9bn of assets to be dumped.The losses are particularly striking because Peloton ABS was one of the big winners from the US subprime crisis, gaining 87 per cent last year after betting against low-quality mortgages.But last month Ron Beller, co-founder, told the Financial Times that the firm had begun investing in "good-quality assets that are trading at deeply discounted prices" - including a large position in AAA-rated mortgages.
The losses are particularly striking because Peloton ABS was one of the big winners from the US subprime crisis, gaining 87 per cent last year after betting against low-quality mortgages.
But last month Ron Beller, co-founder, told the Financial Times that the firm had begun investing in "good-quality assets that are trading at deeply discounted prices" - including a large position in AAA-rated mortgages.
