March 23, 2020 / 11:23 AM / 16 days ago

Fund manager AlphaCentric looks for asset buyers as coronavirus bites - FT

March 23 (Reuters) - Fund manager AlphaCentric is looking for buyers for more than $1 billion of U.S. mortgage bonds to help cover outflows after its losses escalated amid the current virus-fueled selloff, the Financial Times reported on Sunday.

The AlphaCentric Income Opportunities fund, a subprime mortgage specialist, lost more than 30% of its value last week as it is heavily exposed to borrowers with lower credit scores, the report said.

A recovery in the U.S. housing market here is likely to be derailed by the coronavirus pandemic, which has unleashed a wave of layoffs and left the economy teetering on the brink of a recession.

AlphaCentric did not immediately respond to Reuters’ request for comment. (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Saumyadeb Chakrabarty)

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