Ellington halts redemptions on two subprime mortgage funds

A

ASusilovic

Ellington Management Group LLC has halted investor redemptions from two of its funds because the $5.2 billion hedge fund firm is struggling to value some of their subprime mortgage holdings.
Redemptions from the New Ellington Credit Overseas Ltd. fund and the New Ellington Credit Partners LP fund have been suspended as of the end of September, the firm wrote in a letter to investors. MarketWatch obtained a copy of the letter. A spokesman for the firm declined to comment.
Concerns about how hedge funds value illiquid holdings and report performance have increased in recent months as this summer's credit crisis disrupted trading of mortgage-backed securities (MBS) and other more complex securities such as collateralized debt obligations. If such securities don't trade, they become more difficult to value.

http://www.marketwatch.com/news/sto...x?guid={1B97FF0D-0B5C-48DE-8C0A-D79CBD3D09D9}

Thank God, the worst is over ! :D
 
Wouldn't the world be a nice place if we could value everything at our offer! :) It gets more surreal by the day.
 
Quote from damnit:

Sub prime is a mess and the markets are shying from reality.
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Nope. All debts will be paid for by reaching into YOUR savings and making a generous withdrawal.
 
Quote from daddyeaux:

the ABX index BBB- paper is still falling with some of it around 28 cents on the dollar.....it aint over
More...


Housing Futures & Derivatives - ABX BBB- Tranches Set New Lows

ABX-HE-BBB 07-1

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Index Constituents

Fremont Home Loan Trust
HOME EQUITY ASSET TRUST
Long Beach Mortgage Loan Trust
CWABS Asset-Backed Certificates Trust
Morgan Stanley ABS Capital I Inc. Trust
RASC Series 2006-KS9 Trust RASC06-KS9 2006
Structured Asset Securities Corporation Mortgage Loan Trust 2006
J.P. Morgan Mortgage Acquisition Trust
MASTR Asset Backed Securities Trust
Merrill Lynch Mortgage Investors Trust
Securitized Asset Backed Receivables LLC
Soundview Home Loan Trust
FFMLT Trust 2006
GSAMP TRUST 2006
ABFC 2006-OPT2 Trust
ACE Securities Corp. Home Equity Loan Trust USD
Bear Stearns Asset Backed Securities I Trust 2006 :D :D :D Trust and Bear Stearns....hhhmmm...let me think twice....????
Carrington Mortgage Loan Trust, Series
Citigroup Mortgage Loan Trust
 
Foreclosures Doubled in September as Loan Rates Rise


U.S. home foreclosures doubled in September from a year earlier as subprime borrowers struggled to make payments on adjustable-rate mortgages, RealtyTrac Inc. said.

There were 223,538 foreclosure filings last month, including default and auction notices and bank repossessions, an 8 percent decline from August. California had the most with 51,259 filings and Florida was second with 33,354. The national foreclosure rate was one for every 557 households.

Foreclosures are deepening the U.S. housing recession by pushing more homes onto a market where sales and prices are dropping. There's a 10-month supply of unsold homes, the highest in at least eight years. As many as half of the 450,000 subprime borrowers whose mortgages will re-set through December may lose their homes because they can't afford the higher payments, according to data complied by UBS AG and Credit Suisse Group.



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Hum....new lows...is it fair enough to extrapolate the graph to ZERO - let´s say until Dec 2007 ?:D
 
Correct me if my count is wrong, but isn't the Ellington funds Michael Vranos' second major disaster or is he even more distinguished!!!!

The first time I remember him blowing up was in spring '94-- around the time that Kidder went under... Remember karate man Joe Jett of GE?!!!!...-- a hedge fund he also ran out of Old Greenwich... Market neutral, fixed income oriented... I think it was MBS related as well... IO's???

Impressive that he was able to get back on his feet and torpedo investors *badly* again!!!
 
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