SPM's new credit fund looks to capitalize on liquidity problems in mortgage market
Structured Portfolio Management (SPM) has announced the launch of a hedge fund designed to take advantage of dislocations in the structured credit and mortgage markets.
The SPM Directional Mortgage Credit Fund (SPM Credit Fund) is intended to capitalize on the increasing lack of liquidity in all areas of the structured credit markets, particularly among mortgage-backed securities. It will also be involved in relative-value mortgage credit strategies.
'As the consequences of the subprime mortgage meltdown continue to play out we expect a series of opportunities for productive investing to appear,' says Don Brownstein, CEO of SPM. 'Our long-time experience as managers of mortgage-backed securities portfolios as well as our experience in the mortgage servicing business will help us identify the most promising of these opportunities.'
The SPM Credit Fund launched September 1, 2007. It is open to new investment with the goal of raising USD500 million. Consistent with the firm's overall risk management philosophy, the SPM Credit Fund will use limited leverage and seek to control the specific risks to which it is exposed.
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