(Bloomberg) -- A group of hedge funds is telling
the U.S. Securities and Exchange Commission to be on the lookout
for manipulation of bonds backed by subprime mortgages.
Paulson & Co., based in New York, told the SEC that
investment banks may pay inflated prices to buy bad loans that
are collateral for bonds, said Michael Waldorf, a senior vice
president at the hedge fund. Removing delinquent loans may
prevent bonds from defaulting and triggering losses in the
banks' investments in derivatives, he said. Waldorf declined to
name the other hedge funds that also warned the SEC.
Read more at Bloomberg Bonds News
the U.S. Securities and Exchange Commission to be on the lookout
for manipulation of bonds backed by subprime mortgages.
Paulson & Co., based in New York, told the SEC that
investment banks may pay inflated prices to buy bad loans that
are collateral for bonds, said Michael Waldorf, a senior vice
president at the hedge fund. Removing delinquent loans may
prevent bonds from defaulting and triggering losses in the
banks' investments in derivatives, he said. Waldorf declined to
name the other hedge funds that also warned the SEC.
Read more at Bloomberg Bonds News
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