The FBI last month searched the offices of a California real estate investment firm Continuum Analytics, which is linked to bad loans recently disclosed by Zions and Western Alliance, according to legal correspondence seen by Reuters.

Continuum Analytics is an affiliate of the little-known Cantor Group funds which Zions and Western Alliance have said defaulted on about $160 million in loans, spooking markets already on alert for signs corporate credit is weakening.

On Sept. 11, FBI agents searched Continuum’s Newport Beach, California, offices, law firm Paul Hastings wrote in a September 12 letter seen by Reuters.

Representatives for Continuum did not respond to emails and calls seeking comment. The FBI is an enforcement arm of the Justice Department. Spokespeople for the agencies did n

See Full Page