Tuesday, July 31, 2007

UPDATE 1-Bear Stearns halts redemptions in third hedge fund

(Reuters) - Bear Stearns' $850 million Asset-Backed Securities
Fund experienced declines in July, prompting some investors to
seek redemption of their investments. The investment bank,
however, believes the assets in the fund -- tied to Alt-A and
prime mortgages -- are worth more than what current market
conditions will allow.




Through the end of June, the fund was up about 5 percent.
But mortgage investments have taken a beating this month and
most of the year amid a rising wave of delinquencies and
defaults on subprime mortgages, or loans made to people with
weak credit.


Read more at Reuters.com Bonds News

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