Deals
Big Long Is New Big Short as Bass Joins Subprime Bet: Mortgages
This article is for subscribers only.
Investors who made some of the biggest profits from the 2007 bust in U.S. mortgages are once again in agreement. This time, they’re going long.
Hedge fund manager Kyle Bass, who made $500 million betting against subprime debt in the crash, is raising a fund to buy home loan securities. He’s joining Greg Lippmann, a former Deutsche Bank AG trader, and John Paulson, who made $15 billion in 2007, in betting on default prone mortgages. Goldman Sachs Group Inc. and American International Group Inc. have also emerged as buyers this year as trading more than doubled for non-agency mortgage notes.