The High Grade Structured Credit Strategies Enhanced Leverage fund...
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Ills Deepen in Subprime-Bond ArenaBy Serena Ng and Kate Kelly
June 18, 2007
Word Count: 1,183 | Companies Featured in This Article: Bear Stearns, Merrill Lynch
SourceA few weeks ago, the market for bonds backed by risky home loans looked like it was calming down. Now, problems are quickly mounting.
At Bear Stearns Cos., a group of hedge-fund managers at the Wall Street firm spent the weekend scrambling to line up new investors or lenders to keep afloat their fund, called High Grade Structured Credit Strategies Enhanced Leverage fund. The fund, which invests in many securities that are backed by subprime mortgages, suffered heavy losses in recent months.
On Friday, credit-rating firm Moody's Investors Service slashed ratings on 131 bonds backed by pools of speculative subprime ...