Solent Capital Partners May Sell Assets

This is our second report of possible asset sales in the last hour. A vehicle run by UK hedge fund Solent Capital Partners LLP that invested in US residential mortgage-backed debt has become the latest in a string of firms hit by the subprime mortgage crisis. The Mainsail II vehicle said on Monday it may be forced to sell assets, because it has been unable to raise short-term funding due to volatile markets.

The risk of using short-term borrowing to invest in longer-term assets has moved into sharp focus in recent weeks as borrowers around the world have found it more difficult and more costly to roll over maturing debt.