Aiming at the heart of the trouble are BlackRock Inc. and Highfields Capital Management LP, who have teamed up to form a new company, Private National Mortgage Acceptance Co. LLC, or PennyMac, that will acquire and restructure distressed residential mortgage loans.
After raising capital from investors, PennyMac will buy loans from financial institutions that want to cut their exposure to mortgage debt and then do workouts with borrowers to reorganize the loans, hoping to sell them later at a tidy profit.
Meanwhile The Deal's Vipal Monga writes that Blackstone Group LP's debt business is on the verge of closing two collateralized loan obligation funds to invest in leveraged loans. And according to sources, J.P. Morgan and Japan's Norinchukin Bank are investing separately in the triple-A tranches of two CLOs of $500 million each. - George White
See PennyMac press release
See story about debt markets from TheDeal.com
