Thursday, July 12, 2007
Standard & Poor’s said it was preparing to downgrade $12 billion of mortgage bonds, citing a deepening housing slump
SYDNEY-based hedge fund manager that manages $US2.5 billion has put a limit on withdrawals from two of its funds that invest in risky debt products known as collateralised debt obligations, expressing fears the funds would otherwise not survive. Basis Capital offers two funds with funds under management of $600 million to Australian retail investors, the Basis Yield Fund and the Basis Aust-Rim Diversified Fund. It was unclear last night whether the problems of the offshore-domiciled funds were reflected in the Australian domiciled funds. Standard & Poor's rates the Australian funds as five star.