Thursday, June 14, 2007

Bear Stearns sells bonds to cover hedge fund

(Reuters) - They said the sale appears related to losses sustained in subprime mortgages by at least one hedge fund managed by the investment bank. The sale came just as New York-based Bear Stearns said its quarterly earnings fell by a third, citing stress in the mortgage market that hurt bond trading revenue and as it wrote down assets at a stock trading venture.




The securities for sale are among the least likely to suffer losses from the meltdown in risky mortgage assets caused by years of loosened underwriting standards and a slump in the U.S. housing market. That would ensure the money is raised expeditiously, the managers said.


Read more at Reuters.com Business News

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