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Investor Raises Charity Cash From REIT Followers

14 Apr 2005

A bond investor has helped raised more than $60,000 for a charity that works on behalf of abused children, in an unusual twist that also involves sub-prime lender and prominent bond issuer Novastar Financial.

A bond investor has helped raised more than $60,000 for a charity that works on behalf of abused children, in an unusual twist that also involves sub-prime lender and prominent bond issuer Novastar Financial.

Howard Hill, senior strategist at NIBC Credit Management, told BW he frequently posts on the Novastar message board maintained by Yahoo. In the posts, Hill explains how Novastar, which is a real estate investment trust, uses the structured finance bond market to finance its lending activities. Hill, who said he has a personal stock holding in Novastar worth "in the mid six figures," noted he posted on the board to educate amateur equity investors on the company's techniques and to counteract some negative stories that have been written about it. And, according to Hill, several other posters asked him how they could thank him for his insight into the sub-prime lending market and he directed them to Justice for Children, a Houston-based advocacy organization for child abuse victims. In recent months, the charity has received more than $60,000 in anonymous donations it attributes to Novastar equity investors, according to Jim Shields, executive director. For more information, visit its Web site (www.justiceforchildren.org).

14 Apr 2005