Smart Money' Investors Sense Value In Subprime,Eye New Funds

Discussion in 'Wall St. News' started by ASusilovic, Nov 14, 2007.

  1. NEW YORK -(Dow Jones)- After months of skittishness around anything tied to risky subprime mortgages, a handful of sophisticated investors are looking to increase their exposure to such assets.
    Hedge fund Fortress Investment Group (FIG), private equity firm Blackstone Group LP (BX) and asset manager BlackRock Inc. (BLK) all said this week that they are laying plans to invest in loans whose values have been pummeled for months. While none went so far as to say the market had hit bottom, their comments were a clear indication that bargain hunting is slowly starting to get under way.

    On Monday, officials from Blackstone said they are starting to see "real values" in risky subprime mortgages and are looking to set up vehicles to take advantage when the bottom hits.

    "We're shifting focus to create some vehicles to go long subprime rather than short subprime," Hamilton James, the firm's president and chief operating officer, said on a conference call to discuss the company's third-quarter results.

    "Real values" in risky subprime mortgages...isn´t it a paradox ?:p
  2. Funny! That's what Abby Cohen used to say about stocks in 2001 and 2002 :D
  3. "Real values" in risky subprime mortgages...isn´t it a paradox ?

    Translation: I think we found overseas buyers or we have found a way to market this or "just a moment" while we put some lipstick on this pig. They'll make a market to "savvy" foreign investors.
  4. I think there are still quite a few German Landesbanks that didn't go under yet. I'd call those first and sell it to them. Complete with offbalance SIV and all :D
  5. You mean the CARE-LESS package....? :D
  6. Yep, the "Gotta love risk free $$$" package.
  7. It's the greater fool theory.
    If they can find some overseas suckers to unload the crap onto.