Bad US Loans Sink London Hedge Fund

Subprime mortgage crisis ripples through world market
By Peter Fearon,  Newser Staff
Posted Jun 29, 2007 4:26 AM CDT

(Newser) –  A London hedge fund is the latest casualty of the US subprime mortgage crisis that has already hit American investment companies, the Financial Times reports. After losing 53% of its value, Caliber Global Investment will sell its assets and try to repay $900 million to investors over the next year.

Caliber held $320 million in securities backed by cheap 2005 mortgages, made to high risk borrowers when lending standards were low and riddled with delinquencies and defaults. The company has lost $58 million so far this year on its 2005 holdings alone.    (Read more Caliber Global investment stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.