US subprime collapse hits Dublin-listed Cheyne fund
Cheyne Finance, a structured investment vehicle that used short-term borrowings secured against debts backed by US subprime mortgage market to purchased long-term investments, last week said it had to sell off some of its $6 billion (€4.4bn) in assets. The move followed a downgrade of the fund’s rating by credit agency Standard & Poor’s.
Cheyne Finance was forced to appoint the receiver under the terms of the company’s security trust deed “following the occurrence of an enforcement event” — the downgrading of its rating.
