SecondMarket to Add Markets for MBS, CDOs

Illiquid asset marketplace SecondMarket, New York, plans to launch its markets for mortgage-backed securities, collateralized debt obligations and certain limited partnership interests in the first quarter of this year. The limited partnership interests that will be allowed when the platform is expanded will be in hedge funds, venture capital funds and private equity funds, the company said. The company provides a free online trading platform that uses a proprietary matching algorithm to connect buyers and sellers, with bidding on listed assets restricted to qualified institutional buyers and accredited investors. The platform also provides access to research and market activity information. The company has traded $1 billion face value of securities since 2004, including auction-rate securities, bankruptcy claims and illiquid blocks of restricted securities in public companies.