Oaktree, Elliott Among Bargain Hunters Circling Mortgage Trusts
- Hedge funds are aiming for returns as high as 30%, people say
- Some home-loan REITs are also selling off pieces of portfolios
This article is for subscribers only.
Americans hurt by the coronavirus pandemic are skipping home-loan payments, and the trusts that own the mortgages are feeling the pain.
Opportunistic funds have noticed. Among the investors in talks to buy discounted assets in the distressed real estate investment trusts are Paul Singer’s Elliott Management Corp. and Appaloosa Management, run by David Tepper, according to people involved in the deals who asked not to be identified discussing private transactions. Apollo Global Management Inc. and Howard Marks’s Oaktree Capital Group are also among interested investors, the people said.