Strategic Asset Funding Corp., a Los Angeles-based financial advisor, will utilize securitization to leverage a new hedge fund the company is launching, following the lead of other leveraged/derivative houses eyeing the collateralized-bond obligation market as a way to shore up capital and protect themselves from the "hot-money" volatility recently experienced in hedge funds derivatives market, according to a source familiar with the situation.

"Our issuance calendar depends on the returns we're trying to achieve," the source said, adding that the fund would be at least $100 million and looked to launch next year. "Right now we're doing a lot of analysis and putting things together."

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