Newly formed hedge fund, Trevally, positioning for a housing collapse similar to 2008

[jmbar2]

A gathering storm... First they jacked up housing prices, now they will swoop in as those same markets collapse.

https://www.bnnbloomberg.ca/investing/2024/11/08/jim-pallotta-backs-fund-that-sees-strain-in-us-housing-market/

Trevally is a minority-led firm co-founded by Chief Investment Officer Steve Palmer and Co-Chief Executive Officers Matt Jozoff and Brett Nicholas. It has raised about $100 million in total seed capital, including backing from investment bank Seaport Global Securities, and it has early commitments from other investors for as much as $150 million more.

Representatives for Raptor and Seaport declined to comment, as did Trevally, which is named for a predatory fish with excellent vision.

Trevally aims to make consistent double-digit returns by taking advantage of strains it sees on the housing market — including extreme weather, higher home insurance costs and elevated mortgage rates that have curbed borrowers’ mobility. It will initially focus on investments tied to government-owned Ginnie Mae, which securitizes mortgages taken out by low- and moderate-income households.

“We believe many servicers may become unable to perform their obligations, creating significant investment opportunity in Ginnie MBS,” the firm wrote in the investor presentation.

[Irish_Dem]

1. Oh no

It is going to be bad isn't it?

[jmbar2]

3. I think so...

[jmbar2]

2. The threat to low income housing projects

Millions of units of affordable housing projects built in the 1990s under the Low Income Housing Tax Credit (LIHTC) will be reaching the end of their contracts for maintaining affordable rents. At the end of those contracts, they can jack up rents, or sell the apartment complexes to hedge funds.

https://shelterforce.org/2022/04/07/what-can-be-done-when-lihtc-affordability-restrictions-expire/

[Irish_Dem]

4. The billionaire vultures are circling the entire US.

What can they gobble up in the next four years.

[tulipsandroses]

5. trump will fix everything

Isn't that what he and his supporters said?

[Fiendish Thingy]

6. Expansion of the rapidly growing Private equity landlord class. Nt

[markodochartaigh]

7. When the Republicans tank

Social Security millions of seniors will be forced to sell their homes into a market rapidly spiraling downward in order to get money for their living expenses. Children will lose their inheritance. The houses will be bought up in bulk for cash for pennies on the dollar by hedge funds. We saw this to some extent in the 2007-8 crash.

Trump's Secretary of the Treasury, Mnuchin, the foreclosure king made a fortune taking advantage of the situation.

[mahina]

8. Another way for seniors to meet their living expenses is to share housing.

There are homesharing nonprofits that help with matching, best practices, background checks, connecting w mediation services, etc. Community can do this work informally too.

One here is homesharinghawaii.org; there are several on the continent too.

[applegrove]

9. Real estate will collapse because 11 million people will

Last edited Sat Nov 9, 2024, 01:49 AM - Edit history (2)

be kicked out of the country. Artificial Intelligence will kill off the jobs of the educated. They will sell their houses too.