Goldman Sachs began raising funds for a U.S. Housing Recovery Fund, which will invest in non-agency mortgage-backed securities, including the subprime bonds that burned many money managers during the financial crisis.SUBPRIME SEDUCES AGAINAnd even if home sales and prices don't recover, mortgage-backed securities still perform well as they provide higher yields relative to Treasuries and are appealing against a stable rate policy. A substantial risk would occur if interest rates rose abruptly and the U.S. economy weakened substantially, resulting in a spike in mortgage defaults Toms Glitter For Women Light Pink Comfortable.Hedge funds are not the only ones pouncing on mortgage assets.
These new funds are investing mainly in mortgage securities and the home loans themselves. In some portfolios, there's also distressed residential loans and real estate properties.NEW YORK (Reuters) - The U.S. housing market may still be in the doldrums, but funds that are betting on big gains in mortgage-related investments are a hot ticket this year on Wall Street.Morgan Stanley Investment Management launched not one Cheap toms, but two separate funds dedicated to mortgage-related investments during the first quarter.(Edited by Jennifer Ablan and Andre Grenon)This is not a return to the heady days of the subprime mortgage boom when banks were furiously competing to create sophisticated securities that ultimately imploded and led to the financial crisis. Rather, investors are showing an appetite for high-quality mortgage securities that have been beaten down and are now seen as having value as the housing market begins to find a bottom."There has definitely been a pick-up in investor interest in the asset class and the amount of interest has caused managers to want to come to market with a product because they know there is an appetite for it," said Michael Roth, co-founder of Stark, a $2.4 billion hedge fund.
Average home prices across the country were back to late 2002 levels in February, according to the S&P/Case-Shiller composite index of 20 metropolitan areas, issued on Tuesday. However, there were some signs that prices may be stabilizing, with a 0.2 percent gain on a seasonally adjusted basis that month.Neuberger Berman recently launched its Preservation Residential Mortgage Fund, which will invest in distressed residential assets, from loans to real estate, including distressed residential mortgage loan workouts."As the non-agency mortgage market came under stress in mid-2011, we found that certain securities became attractively priced with loss-adjusted yields higher than those of risky corporate or sovereign credit," said Syed. "These yields can be achieved with no improvement in housing. However, if the housing market begins to improve, we can see significant upside."Last year during the equity market tumult, mortgage-focused funds performed strongly - up 9.2 percent - while the average hedge fund was down 5 percent, according to eVestmentHFN, which tracks hedge fund flows and performance."Where does the yield-hungry investor go to whet their appetite?
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