Shares of U.S. subprime mortgage lender Accredited Home Lendersrebounded more than 50% on Wednesday amid speculation it might get a capital infusion or a takeover approach, with Goldman Sachs cited by traders as a possible partner.
Amid the meltdown in the U.S. subprime lending market, Accredited had said it needs to raise money after paying $190 million that lenders demanded and that it is exploring "strategic options," including raising new capital.
On Wednesday, Accredited was not immediately available for comment and Goldman Sachs declined to comment.
"There is some speculation that Goldman Sachs is willing to commit funds to a lending company if they feel that the market has basically bottomed," said William Lefkowitz, options strategist at brokerage firm vFinance Investments in New York.
"Accredited recently said that they are looking for a partner to help bail them out of these tough times. Obviously investors are speculating that these two companies might be in talks. The options in Accredited are very active."
Accredited shares closed up about 52 percent at $6.04 after falling about 65% on Tuesday.
One person familiar with the situation played down the chances of Goldman Sachs being interested in Accredited. More than two dozen subprime lenders have quit the industry in the last year.
Lenders have been battered by rising defaults, and data released on Tuesday showed late payments on U.S. mortgages at a 3-1/2 year high, feeding investor worries that lenders might restructure or seek bankruptcy protection.