Jun
16

Ex-Goldman Sachs CDO Head Jonathan Egol, Former Boss Of The Fabulous Fab, To Launch Hedge Fund

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In a world of heightened financial regulation, investment banks like Goldman Sachs Group GS +0.85%,JPMorgan Chase JPM +0.56% and Morgan Stanley MS +0.53%are finding it hard to own complex, but high-yielding debt securities given strict new rules. But two veterans of the financial crisis, Jonathan Egol and Rob Allard, former top traders at Goldman Sachs, see an opportunity and are launching a hedge fund called Firebreak Capital to invest in securities that banks can no longer own.

Firebreak is expected by Egol and Allard to find value in debt markets where activity is moving away from the traditional bank market and into shadow banks like hedge funds and private equity as a result of regulatory reforms and stiffer capital requirements. The fund appears interested in securitization markets, where both Egol and Allard were among the top traders, in addition to new financial innovations such direct lending. While direct lending brings novel technology to traditional banking, it nonetheless is heavily reliant on the specialized securitization markets that also fuel housing and asset-backed finance…

Ex-Goldman Sachs CDO Head Jonathan Egol, Former Boss Of The Fabulous Fab, To Launch Hedge Fund

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