Partnering with the government proves a hard sell
Fri May 1, 2009
Managers are trying to get into the TALF auctions, but many are leery of the political complications of the bigger PPIP program.
Managers are trying to get into the TALF auctions, but many
are leery of the political complications of the bigger PPIP
By Irwin Speizer
When the U.S. government launched the Term Asset-Backed
Securities Loan Facility (TALF) to help restart clogged credit
markets, Duncan Hennes went shopping for a hedge fund through
which his investment company, Rye, N.Y.-based Atrevida
Partners, could participate. He couldn't find one that was
So Hennes started his own hedge fund, Atrevida TALF
Opportunities Fund, and used it to invest in one of the first
TALF auctions, held in April. He used subsidized government
loans to close two deals that he figures will produce gross
average yields of about 25%. His only complaint: There weren't
more debt securities available to bid on.
"I would say it has been a little slow," Hennes says. "But I
think it is gaining momentum. It is...
ISSN: 2151-1845 / CDC10004H
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