A Missing $164 Million Highlights New Risk for Mortgage Bonds
- Special servicer withheld money from investors after loan sale
- Amount of funds held back shocked investors, raised questions
This article is for subscribers only.
In January, investors including TPG Angelo Gordon, LibreMax Capital and Lord Abbett & Co. got a shock.
The firms had bought into a bond deal arranged by Goldman Sachs Group Inc. in 2021 that financed the purchase of dozens of apartment buildings in San Francisco, one of the nation’s priciest markets. But by the end of 2022, the companies that borrowed the money had defaulted and the loan backing the securities was eventually sold off at a deep loss.