Trading in Carlyle suspended

Trading was suspended in an Amsterdam-listed unit of private equity firm Carlyle on Friday pending a company announcement.


Earlier in the day it emerged that the unit, Carlyle Capital Corporation, might be facing cash-flow problems after a number of banks called on it to repay loans.
‘In the past several days there has been a rapid and severe deterioration in the market for US government agency AAA-rated residential mortgage-backed securities,’ CCC was reported as saying by Reuters.
CCC, which had a $21.7bn investment portfolio, was listed in Amsterdam last July for €19 per share but was trading at around €5 by Thursday’s close.
According to news agency ANP, 97% of the company’s investment is money borrowed from 11 banks. The cash has been put into US mortgage-backed securities issued by the Freddie Mac and Fannie Mae groups.

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