UBS hedge fund unit Dillon Read's closure late Tuesday is rumored to be the result of losses taken on poorly calculated derivative trades. The 2001 and 2002 positions which caused "idiosyncratic risk" for Dillon Read and its ultimate demise were rumored to be long bets on the subprime sector, sources said.


Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.