A Cayman Island court placed the Basis Yield Alpha fund in liquidation after the Australian fund declared heavy losses related to the U.S. subprime mortgage sector, reports the International Herald Tribune. Grant Thornton, the U.S. based accounting firm, has been appointed as the fund’s liquidator. “At this stage we are undertaking an immediate assessment as to the financial position of the fund and any likely return to investors,” Paul Billingham, a Grant Thornton partner, said Thursday in a statement. Basis had been heavily invested in collateralized debt obligations backed by asset-backed securities. As recently as two months ago the fund had a five star rating from Standard & Poor’s.
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