New Century Financial sells loan portfolio for less than 30 cents on the dollar

New Century Financial sold a 170 million dollar loan portfolio for less than 30 cents on the dollar to Ellington Management Group. Ellington Management is a hedge fund and this will be part of a growing trend of hedge funds, buyout firms and other Wall street firms trying to buy up sub prime assets as the market continues to collapse. New Century Financial will be selling its loan servicing units later this month. Carrington Capital Management, another fund manager, in early April agreed to buy the unit for $133 million unless a rival tops its bid.