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SEC Probes Small Bond Trades That Lead to Big Returns ‘Odd lot’ buying in mortgage portfolios -WSJ

edited October 16 in Fund Discussions
This is a WSJ October 12, 2020 article by Justin Baer which identifies AlphaCentric Income but also mentions some other possible funds: Semper MBS Total Return, Deer Park Total Return Credit Fund and Performance True Strategic Bond Fund.

The article states how in each instance, the fund bought those mortgage securities in small “odd lots,” or increments of less than $1 million, according to a securities filing.

The article mentions how odd lots often trade at a discount to larger, “round-lot” positions. Sometimes these discounts are not being applied buy rely on a third parties that use pricing on round lots on the same trading security.

There is a pay wall -interesting article.

https://www.wsj.com/articles/sec-probes-small-bond-trades-that-lead-to-big-returns-11602495001

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