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)