The SEC said the investment adviser will pay $79.8 million to settle charges for overvaluing about 4,900 largely illiquid collateralized mortgage obligations held in 20 advisory accounts and for executing hundreds of cross trades between advisory clients that favored certain clients over others.

The Securities and Exchange Commission said Thursday that asset manager Macquarie will pay nearly $80 million to settle an investigation into how it valued illiquid mortgage securities that it traded with some of the mutual funds it managed.