Bad US Loans Sink London Hedge Fund

 A London hedge fund is the latest casualty of the US subprime mortgage crisis that has already hit American investment companies, the Financial Times reports. After losing 53% of its value, Caliber Global Investment will sell its assets and try to repay $900 million to investors over the next year.

Caliber held $320 million in securities backed by cheap 2005 mortgages, made to high risk borrowers when lending standards were low and riddled with delinquencies and defaults. The company has lost $58 million so far this year on its 2005 holdings alone.