In separate lawsuits filed in a New York federal court, a $58m hedge fund alleges that Citigroup and Wachovia, respectively, improperly required the fund to pay out more money from credit default swaps – insurance derivatives contracts – amid a steep decline in the value of mortgage-backed bonds, reports the WSJ. The fund – VCG Special Opportunities Master Fund, owned by an investment firm that also owns a Puerto Rican investment bank – was at the time named the CDO Plus Master Fund.

This entry was posted by Gwen Robinson on Tuesday, March 4th, 2008 at 5:00 and is filed under Capital markets, Hedge funds. Tagged with citi, VCG, wachovia. Edit this entry.