March 2 - U.S. hedge fund Elliott Management has around 200 million pounds ($267.6 million) of exposure to Market Financial Solutions, a UK mortgage provider that collapsed last week, the Financial
Elliott Management holds $268 million exposure to collapsed UK lender MFS, source says
Details of Elliott Management's Exposure to Market Financial Solutions
Background and Acquisition of Position
March 2 - U.S. hedge fund Elliott Management has around 200 million pounds ($267.6 million) of exposure to Market Financial Solutions, a UK mortgage lender that collapsed last week, a source familiar with the matter said on Monday.
The hedge fund bought the position from Chetwood Bank, a financial institution Elliott backs, the source said.
Industry Response and Market Impact
Creditors and Administration Proceedings
Banks and private credit funds are rushing to work out their exposure to MFS, a little-known lender that has been put into administration. Creditors cited financial irregularities and mismanagement in court documents published in the UK last week.
MFS has not responded to requests for comment.
Effect on Financial Markets
The collapse of MFS hit the shares of banks including Barclays and Jefferies on Friday, and accelerated a wider selloff in financial firms and alternative asset managers, as the market grappled with the prospect of widening cracks and poor lending standards in parts of the credit market such as asset-backed lending.
Media Coverage
The Financial Times reported the news about Elliott earlier on Monday.
Additional Information
($1 = 0.7474 pounds)
(Reporting by Iain Withers in London, Sri Hari N S in Bengaluru; Editing by Tasim Zahid and Sahal Muhammed)
