UWM, the largest mortgage lender in the US, lost $603 million due to interest rate bets, with Oaktree providing a $2.05 billion bailout at an annual interest rate of 10%.
United Wholesale Mortgage (UWM) lost $603.2 million on interest rate derivative positions during the three months of this spring, resulting in a net loss of $451.9 million in the second quarter. The company has suspended its dividend and announced a $2.05 billion capital injection from Oaktree Capital Management, of which $1.65 billion will be in preferred stock with an annual cash return of 10%, rising to 13% if not paid in cash. In addition, Oaktree has gained control over UWM's management and board of directors, and has the right to force UWM to repurchase its shares after seven years, guaranteeing a minimum return of $600 million. Following the announcement, UWM's stock price fell 35% on August 6, closing at $1.19.
Source:Yahoo财经 · Source Link
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