Elliott Sold RMBS as Others Bought Last Quarter

Elliott Management Corp., the New York-based hedge fund founded by billionaire investor Paul Singer, sold residential mortgage-backed securities last quarter as many of its competitor funds were buying.

“While we acknowledge that the yield profile of many RMBS bonds compares favorably to other credit products, the absolute yields are very low,” Elliott said in a third-quarter letter to clients, a copy of which was obtained by Bloomberg News. “Even considering a likely continuation of good news in housing, we do not find most RMBS bonds compelling. As a result, we have continued to sell into this rally.”

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