Ex-Third Point Partner’s Bond Trades Focus of SEC Probe
- SEC is said to review valuations of Keri Findley’s investments
- U.S. has been scrutinizing illiquid bonds across Wall Street
Pedestrians walk along Wall Street near the New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
U.S. regulators are investigating whether a top trader who left Dan Loeb’s Third Point hedge fund earlier this year contributed to the mispricing of hard-to-value mortgage bonds, two people familiar with the matter said.
The Securities and Exchange Commission is probing whether former Third Point partner Keri Findley caused the thinly traded bonds to be undervalued, said the people who asked not to be named because the probe isn’t public. Findley, 35, left the $18 billion firm in February, telling people who had direct communications with her that she was retiring and moving to California.