DoubleLine To Make Its Own Brand Of Mortgage-Backed Securities

Ted

FYI: DoubleLine Capital is embarking on a plan to originate and securitize mortgages, seeking to fill a niche that has traditionally belonged to banks and brokerage firms.

The Los Angeles-based money manager, headed by Jeffrey Gundlach, is starting an investment adviser called Mortgage Opportunities Capital, according to regulatory filings. It will be an integral part of DoubleLine’s plan to raise capital from institutional investors to originate or buy commercial and residential real-estate loans and package at least some into securitized debt.
Regards,
Ted
https://www.bloomberg.com/news/articles/2017-12-21/doubleline-to-make-its-own-brand-of-mortgage-backed-securities

LewisBraham

Conflicts of interest much? How to avoid self-dealing and affiliated transactions?

msf

Exactly the gut reaction I had.

I did a little bit of checking (too busy now to look further) - there are established procedures for underwriter-brokers to follow to deal with their inherent conflicts of interest. Still, even before skimming the article, it seemed that Gundlach was doing this to generate securities for him to buy.

Old_Joe

Well, leaving aside the ethical question, if "Gundlach was doing this to generate securities for him to buy" one would at least hope that the securities would be reasonably safe. Why would you create crap for yourself?

davidrmoran

right
to eat