As capital restrictions on banks mount along with new regulations spanning the mortgage securitization business, private capital is seeing an entrance opportunity. Barron's has a look at Seer Capital, one investor making waves in the securitized credit and bond markets, treading where banks won't — or can't — go:

Sensing there would be an opportunity, Philip Weingord left Deutsche Bank more than five years ago and over time brought along colleagues Richard d'Albert, Karen Weaver, and Michael Lamont. Before founding Seer, Weingord, now 52, had been a trader, both at Deutsche and before that at the former Credit Suisse First Boston.

"In the old days, hedge funds would compete with banks for attractive investment opportunities," he notes. "Now the banks are retreating to more of an agent role," relying on the funds as partners.