Alesco says IndyMac failure hurt its portfolio

Tue Jul 15, 2008 7:17pm EDT
 
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NEW YORK, July 15 (Reuters) - Alesco Financial Inc. (AFN.N), a real estate investment trust, said on Tuesday that the failure of IndyMac Bancorp Inc IMB.N had "significantly impacted" its portfolio but its strong liquidity would enable it to "manage through these difficult times."

U.S. banking regulators swooped in to seize mortgage lender IndyMac on Friday after withdrawals by panicked depositors led to the third-largest banking failure in U.S. history.

Shares of Alesco, which holds some IndyMac preferred securities through collateralized debt obligations (CDOs), tumbled 27 percent on Monday. Alesco said on Tuesday it was evaluating its overall portfolio for changes in fair value. It expects to report second-quarter earnings on Aug. 5. (Reporting by Megan Davies; Editing by Gary Hill)

 

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