Bear Stearns' Hunt for Big Cash

A nearly $4 billion bond sale pushed by the firm has many on Wall Street figuring its hedge funds are preparing to close shop

Wall Street bond traders are raising eyebrows at Bear Stearns' (BSC) attempt to sell some $3.86 billion in mortgage-backed bonds—just as the big investment firm tries a last-ditch attempt to salvage one its ailing hedge funds. The big bond deal is prompting speculation that Bear Stearns traders are trying to raise cash by selling off some of the troubled hedge fund's better assets held by the Bear Stearns' High-Grade Structured Credit Strategies Enhanced Leverage Fund, which invested heavily in bonds backed by subprime mortgages.

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