Loeb Says Harder to Gain on Mortgages, Targets Bank Assets
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Billionaire hedge-fund manager Dan Loeb said he’s targeting junior debt of financial firms and assets being divested by banks as he scales back securities such as mortgage bonds.
“It’s gotten much more difficult to make money in mortgages, and asset-backed securities generally,” Loeb said today on a conference call for Third Point Reinsurance Ltd. “We have largely taken profits in our re-remic portfolio and we’ve mostly redeployed that capital elsewhere.” Re-remics are securities, created from other mortgage bonds, that divide the debt into safer and riskier pieces.