Investment Opportunities

Structured finance is a unique form of financing that involves the securitization of assets. Securitization is the process of pooling debt backed by collateral, such as first mortgages or home equity loans, and then re-packaging the debt as bonds.

Through our Mortgage Opportunity Funds, Braddock invests in all classes of non-Agency residential mortgage-backed securities (RMBS):

• Investment strategy : We focus on relative and absolute value to identify opportunities in MBS and ABS markets. We conduct a bottom-up analysis, which takes into account specific asset characteristics, deal structure, market conditions and the overall economic environment. We use a variety of analytical systems to guide our investment deicisons:
  • BBx Logic — Braddock's loan level database, developed by the investment team
  • Sophisticated in-house models, research and bond surveillance tools
  • Bloomberg and Intex — bond and portfolio analysis systems
• Portfolio construction : We have a disciplined quantitative and qualitative process for selecting individual investments and ensuring appropriate portfolio structure and diversification. Our contacts on Wall Street and our relationships throughout the structured finance market allow us to stay well informed of market developments and attractive investment opportunities.
• Risk management : We continually monitor and actively manage our portfolios.

Braddock's investment team has combined with PMH Financial, an REO disposition company, to bid on and acquire pools of REO assets in the Blake Street Partnerships.

Through Braddock's relationship with PMH, Blake St. funds have multiple channels for REO sourcing and are able to perform comprehensive valuation and due diligence rapidly when REO bulk sales become available.

Combined with Braddock's credit analysis, modeling expertise, knowledge of residential real estate markets and the ability to track macro trends in the market, PMH provides the partnerships a unique edge in the REO market.

Stout Street was founded to provide financing to real estate investors in an environment where most of the traditional financing options available to these investors have dried up. The Fund purchases loans – secured by first lien positions on real property – that are made to professional real estate investors. Borrower equity and current collateral valuation provides credit protection, with lender underwriting targeting loan to values ("LTV") below 60%.