Fund manager AlphaCentric is looking to raise money to shore up its books and ride out sharp market declines sparked by the coronavirus pandemic.
The fund manager is seeking buyers for more than $1 billion of U.S. mortgage bonds to help cover outflows, the Financial Times reported on Sunday.
“Like almost all other mutual funds and ETFs, AlphaCentric Income Opportunities Fund is looking to raise cash in these chaotic markets,” the fund said in an email to Reuters.
The AlphaCentric Income Opportunities fund, a subprime mortgage specialist, lost more than 30% of its value last week as it is heavily exposed to borrowers with lower credit scores, the FT report said.
A recovery in the U.S. housing market is likely to be derailed by the coronavirus pandemic, which has unleashed a wave of layoffs and left the economy teetering on the brink of a recession.
Source: Reuters.com