Home Prices to Drop 10%, LibreMax’s Lippmann Says
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U.S. home prices will drop an additional 10 percent, according to Greg Lippmann, a founder of hedge fund LibreMax Capital LLC and former Deutsche Bank AG trader who gained fame for his bets against subprime-mortgage securities.
While buyers of home-loan securities are anticipating the decline, investors in other markets aren’t pricing in the potential drop, Lippmann said today at the Hedge Funds New York Conference hosted by Bloomberg Link. As a result, mortgage debt that has soared in price this year is still cheaper relative to high-yield, high-risk corporate bonds, he said.