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Hedge Funds Lead Buyers of Prepayment Derivatives.(Brief Article)

Mortgage Servicing News

| September 01, 2003 | COPYRIGHT 2003 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Hedge funds have stepped up as the first buyers of the new mortgage prepayment-based derivatives being offered twice monthly by Goldman Sachs.

Executives at Goldman Sachs told NMN that large mortgage servicers closely observed the first two sales and are also expected to join the market.

"We were very encouraged by the number of clients and the size of the orders that we got," said Bill Cassano, vice president, prepayment derivatives at Goldman.

"The servicers told us that they would watch a few auctions before they participate, but they have been very engaged," Mr. Cassano said.

Alan Brazil, managing ...

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