More gauges for mortgages

Hedge funds

hedge-1-gif
Mortgage arbitrage hedge funds – which, as low-correlation, low-volatility return sources have been popular in recent years with investors – performed poorly in May. For some funds it was the first down month since 1998. Industry veterans say the factors contributing to the drop-off were not structural, and that the style remains attractive overall.

But investors have reason to be wary of mortgage hedge fund strategies – blow-ups such as David Askin’s $600 million loss in 1994 and the implosion

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: