Yet another Australian scalp has been claimed in the subprime mortgage crisis.
The scalping came with the NSW Supreme Court decision to block access to records that would unmask lenders behind escalating house repossessions.
Basis Capital Yield Master Fund, an offshoot of hedge fund Basis Capital, went tits up on Thursday with the appointment of a liquidator to freeze overseas assets. Joint liquidators were named in the Cayman Islands, Britain and Australia.
Problem investment in collateralised debt obligations have been identified. These instruments have been savaged in the credit market slide.
Non-bank mortgage lender RAMS Home Loans Group has also seen its share price plummet.
Basis Yield news broke as the NSW Supreme Court refused the Australian Bankers Association and the Consumer Credit Legal Centre access to records that would finger the real lenders behind the surge in home repossessions.
The Sydney Morning Herald reported, last week, that $500 million in Australian subprime loans were technically in default. The vast majority of this finance is arranged through the non-bank sector.
Repossessions are enforced through Supreme Court actions. Last year, the NSW Supreme Court, ordered 5363 repossession writs. But Supreme Court Justice, Jim Spiegelman, said about 18,000 court files would have to be reviewed, raising issues of privacy and practicality.