Opportunity funds on the hunt for forced sellers 

Investment fund margin calls are increasingly helping the market get access to discounted assets through private sales and bids wanted in competition (BWIC) lists, said traders.

Over 1,000 BWICs worth $10 billion-plus in structured finance securities are auctioned weekly at subordinate prices in the 50s area, which include assets once held by investment funds, according to securitization data provider, Empirasign.

Things are expected to worsen before they get better for leveraged borrowers with more funds being forced to sell assets via redemptions and margin calls. Sources believe the margin calls . . .

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David Graubard

David Graubard is a financial writer with deep expertise in bonds. He brings readers actionable content from his experience as a bond trader and a collateralized loan obligation analyst.

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