LONDON (ShareCast) - US mortgage investor Prodesse showed there is still life in the market with a placing that raised £10.4m to invest.

The company placed 2.816m shares at 368p. The net proceeds of the placing will be used to invest in further US agency mortgage backed securities in accordance with the company's investment policy, it said.

Prodesse added that its net asset value including accrued and net undistributed income as at 10 April 2008 was US$6.93 (about 352p). At end December NAV was $7.70.

All of its assets are Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities, which carry an implied 'AAA' rating, Prodesse said in February.

At that time it upped its fourth quarter dividend by 30%, adding "We believe that the continued vigilance of the Federal Reserve will not only serve to calm the markets but it should also help to continue to reduce our cost of funds".

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