Thursday, June 28, 2007

It Depends On How You Define "Unlucky"

by Tanta on 6/28/2007 01:35:00 PM

From Bloomberg:
June 28 (Bloomberg) -- Carlyle Group, the buyout firm run by David Rubenstein, postponed a planned $415 million initial public offering of a fund that invests in bonds backed by mortgages after a slump in the U.S. subprime market.

Carlyle is preparing a revised timetable for the sale, it said in a statement today. The Washington-based firm planned to use most of the money from the IPO to buy AAA-rated residential mortgage-backed securities. The fund also targeted loans, high- yield bonds, and collateralized debt obligations. . . .

"Carlyle's fund looked very similar to the Bear Stearns hedge fund," said Toby Nangle, who helps manage $45 billion in assets at Baring Investment Services in London. "They were unlucky with the timing."

I'd say if you're a retail investor you just dodged a bullet. I don't know that I'd call that "unlucky."