Reuters- Hedge fund manager Michael Vranos is trying to raise $750 million to fund a new company that specializes in the risky subprime mortgages that have roiled several corners of the U.S. economy,The New York Times reported on Sunday.
Citing an offering statement that’s circulating on Wall Street, the newspaper said Vranos is offering shares in a new entity called Ellington Financial LLC. The private placement is aimed at institutional investors such as pension funds and insurance companies, the newspaper said.
Subprime mortgages are home loans to people with weak credit. A rising wave of defaults and foreclosures on these loans recently buckled two hedge funds run by Bear Stearns Cos. Inc. and has hurt the U.S. housing market as lenders stiffen requirements.
