Hedge fund files for bankruptcy

Basis Yield
Alpha Fund,
a £50m hedge fund, has filed for
Chapter 11 Bankruptcy
protection after being hit by rising mortgage defaults.

According to reports, as the situation in the US sub-prime market spread, the
value of its underlying investments fell and it was unable to meet calls from
its creditors to pay back loans.

As a result the fund was served with default notices.

Creditors include JP Morgan
, Goldman Sachs and Citigroup Global Markets.

The Cayman Islands-registered fund is a division of Australia’s Basis

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