Items Tagged with 'Carlyle Group'

RSS

Former New York Governor Elliot Spitzer apparently isn't waiting long to move into his next venture. On the heels of his resignation in the wake of a prostitution scandal, Spitzer is planning a distressed real estate fund that will build off of his father's business, according to a report Tuesday afternoon in the New York Sun.

The financial impact of the mortgage and credit crisis is far from over, according to the chairman of The Carlyle Group, one of the world's largest private equity firms. In remarks made at a breakfast meeting of the Institute for Education Public Policy Roundtable in Washington Tuesday, Carlyle chairman David Rubenstein said that "enormous losses" yet lie ahead for many of the worlds largest banks and financial institutions.

Carlyle Capital Corp., a listed mortgage bond fund that has seen its investments in agency-backed mortgage securities sour, said Thursday that it could not reach an agreement with its lenders over more than $400 million in margin calls. The failed discussions likely signal the end of the road for the highly-leveraged fund, which found itself caught when prices of Fannie Mae and Freddie Mac-backed MBS tanked starting last week.

Carlyle Capital Corp., a listed mortgage bond fund managed by the private equity firm The Carlyle Group, is facing serious challenges as the credit crisis has ratcheted its way up to the top of the mortgage totem pole: agency-backed residential mortgage-backed securities. Housing Wire first reported on Carlyle Capital last week.

Various published reports this morning are suggesting that UBS AG probably sold $24 billion of holdings backed by Alt-A mortgages in a fire sale earlier this week, exacerbating difficulties in a RMBS market already reeling from a histsoric downturn in the U.S. housing market. From MarketWatch:

More news today suggests that the fallout from the subprime mortgage crunch on Wall Street hasn't moderated just yet. First, Bloomberg reports that Cambridge Place's Caliber Fund will fold due to losses associated with subprime mortgage debt investments: Caliber Global Investment Ltd., a $908 million fund invested in subprime mortgage debt, will close as losses widen on defaulted U.S. home loans.