An offering book on Arch Bay Capital, Irvine, Calif., one of the largest investors in nonperforming mortgages, is making the rounds, according to investors and traders familiar with the matter.
“The book went out to three to four bidders,” said one executive who runs a nonperforming loan firm.
At press time company president Shawn Miller had not returned a telephone call about the matter. Historically, the privately held fund has not talked to the media much.
“Arch Bay is a big fund and they’re known for paying high prices,” said one trader, requesting anonymity. “Falling real estate values have not helped them.”
Last fall Arch Bay scuttled plans to enter the residential origination market after hiring several managers and support staff to man the effort.
To date, Arch Bay’s biggest NPL acquisition was a $600 million pool of problem loans it bought from Wells Fargo & Co.