Relative-Value Credit Said To Deck Sowood

02 Aug 2007

Boston-based Sowood Capital Management reportedly was brought down by a relative-value credit strategy that backfired on both legs of the trade.

Boston-based Sowood Capital Management reportedly was brought down by a relative-value credit strategy that backfired on both legs of the trade. Rival funds and credit traders said the fund was long secured debt via cash and loan-only credit-default swaps. At the same time, it was short unsecured bonds ...

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