Archive: 12/07/2007
Main News
The Freeze Is On
The devil will be in the details, but a Bush administration plan to freeze mortgage rates for some homeowners in trouble is already encountering strong criticism. Read More
The devil will be in the details, but a Bush administration plan to freeze mortgage rates for some homeowners in trouble is already encountering strong criticism. Read More
Standard & Poor's Views On Freezing Interest Rates On U.S. Subprime ARMs
There is much discussion in the markets about specific proposals that focus on freezing interest rates on certain U.S. first-lien subprime mortgage loans. It is our opinion that, absent any real offset to default frequency and loss severity that may result from the enactment of any loss mitigation proposal, simply freezing interest rates on some U.S. first-lien subprime mortgage loans would have a negative impact on the ratings of certain U.S. first-lien subprime residential mortgage-backed securities.
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYCWRQTVsLgHxhilpuHQJhuV2VR
There is much discussion in the markets about specific proposals that focus on freezing interest rates on certain U.S. first-lien subprime mortgage loans. It is our opinion that, absent any real offset to default frequency and loss severity that may result from the enactment of any loss mitigation proposal, simply freezing interest rates on some U.S. first-lien subprime mortgage loans would have a negative impact on the ratings of certain U.S. first-lien subprime residential mortgage-backed securities.
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYCWRQTVsLgHxhilpuHQJhuV2VR
Royal Bank of Scotland Group Ratings Unaffected By Write-Downs
Ratings on The Royal Bank of Scotland Group PLC (RBSG; AA-/Negative/A-1+) and related entities are unaffected by the preclose trading statement, which incorporated noteworthy credit market-related write-offs. RBSG expects to write down about £950 million relating to exposures to U.S. subprime mortgage markets and £250 million on their leveraged finance portfolio. The write-offs are not out of line with peers, and we consider them to be manageable.
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYCWRQTVsLgHxhilpuHQJhuV2VA
Ratings on The Royal Bank of Scotland Group PLC (RBSG; AA-/Negative/A-1+) and related entities are unaffected by the preclose trading statement, which incorporated noteworthy credit market-related write-offs. RBSG expects to write down about £950 million relating to exposures to U.S. subprime mortgage markets and £250 million on their leveraged finance portfolio. The write-offs are not out of line with peers, and we consider them to be manageable.
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYCWRQTVsLgHxhilpuHQJhuV2VA
At the same time they were selling mortgage-related securities, many companies protected themselves from losses from a meltdown in the housing market.
www.nytimes.com/2007/12/06/business/06hedge.html - 23 hours ago - Similar pages - Note this
www.nytimes.com/2007/12/06/business/06hedge.html - 23 hours ago - Similar pages - Note this
S&P Says Mortgage Freeze Plan May Cause Downgrades (Update1). By Pierre Paulden. Dec. 6 (Bloomberg) -- US Treasury Secretary Henry Paulson's plan to freeze ...
www.bloomberg.com/apps/news?pid=20601087&sid=a.1._9YeMwd4&refer=home - 6 hours
www.bloomberg.com/apps/news?pid=20601087&sid=a.1._9YeMwd4&refer=home - 6 hours
Vranos May Try to Reopen Ellington Credit Fund. By Gregory Zuckerman. Word Count: 877 | Companies Featured in This Article: General Electric ...
online.wsj.com/article/heard_on_the_street.html - Similar pages - Note this
online.wsj.com/article/heard_on_the_street.html - Similar pages - Note this
Thu, 06 Dec 2007, 00:37
Reuters
The US credit market turmoil is battering the financial sector but is proving to be a bonanza for money manager BlackRock Inc (BLK.N), which, with its deep fixed income roots, has assumed the role of clean-up king. The biggest listed US asset manager saw its shares close Wednesday at USD202 up 45 per cent from its 52-week low set on August 16 in the midst of this year's first wave of credit collapse.
The US credit market turmoil is battering the financial sector but is proving to be a bonanza for money manager BlackRock Inc (BLK.N), which, with its deep fixed income roots, has assumed the role of clean-up king. The biggest listed US asset manager saw its shares close Wednesday at USD202 up 45 per cent from its 52-week low set on August 16 in the midst of this year's first wave of credit collapse.
Consider the spectacle of Treasury Secretary Hank Paulson negotiating an agreement with the banking industry to keep millions of subprime adjustable rate home loans at the introductory rate. The banks will do this voluntarily, you understand. Just ask the Chinese government officials (aka "clients") who periodically meet with Paulson at the University Club in DC what it's like to negotiate with the former CEO of Goldman Sachs. If the banks agree to Paulson's gambit, bank shareholders and loan investors will take a bath, credit available for housing will disappear, and a least one in three subprime borrowers will eventually default anyway.
Compared to complex derivatives, demand deposits, such as checking accounts, might seem simple on the surface. But modeling their values and risks is more challenging that modeling, say, a forward or futures contract or an option. In this clear, 14-page paper, our top-rated and top-selling author Eric Banfield explains correlated simulation and reveals the basic principles to apply in the valuation and duration estimation of demand deposits.
Risk Is Rising of Recession, Solons Hear
Bush Races To Stem a Rash of Subprime Foreclosures
BY JULIE SATOW - Staff Reporter of the Sun
The American economy is looking increasingly likely to be heading into a recession, experts say. During testimony to the House Budget Committee yesterday, the director of the Congressional Budget Office, Peter Orszag, said the risk was "elevated,"...
Bush Races To Stem a Rash of Subprime Foreclosures
BY JULIE SATOW - Staff Reporter of the Sun
The American economy is looking increasingly likely to be heading into a recession, experts say. During testimony to the House Budget Committee yesterday, the director of the Congressional Budget Office, Peter Orszag, said the risk was "elevated,"...
The Bear Facts: Stocks May Lose Out to Bonds, Cash and Gold
Preserving real purchasing power may be the ultimate accomplishment for investors in 2008.
http://online.barrons.com/article/SB119680884228713608.html?mod=djemBF
Preserving real purchasing power may be the ultimate accomplishment for investors in 2008.
http://online.barrons.com/article/SB119680884228713608.html?mod=djemBF
Singapore Hedge Fund Mecca Lures Japanese Dismayed by Regulator
Bloomberg.com Wed, 05 Dec 2007 4:21 PM PST
Dec. 6 (Bloomberg) -- Akira Sunaga runs a Japanese hedge fund and displays the rising sun of his country's flag on company name cards. His office is in Singapore.
Bloomberg.com Wed, 05 Dec 2007 4:21 PM PST
Dec. 6 (Bloomberg) -- Akira Sunaga runs a Japanese hedge fund and displays the rising sun of his country's flag on company name cards. His office is in Singapore.
US activist investor Pershing Square Capital Management has become the first hedge fund manager in more than four ...
eFinancial News Thu, 06 Dec 2007 3:45 AM PST
US activist investor Pershing Square Capital Management has become the first hedge fund manager in more than four months to express a wish to float one of its funds, after market turmoil abruptly halted a series of six hedge fund flotations.
eFinancial News Thu, 06 Dec 2007 3:45 AM PST
US activist investor Pershing Square Capital Management has become the first hedge fund manager in more than four months to express a wish to float one of its funds, after market turmoil abruptly halted a series of six hedge fund flotations.
How does Goldman do it?
Financial Times - Thursday December 06, 09:50 GMT
Financial Times - Thursday December 06, 09:50 GMT
Permal's Head of Risk says Quants Unfairly Attacked During Credit Crisis
Thomson Investment Management News - Thursday December 06, 09:48 GMT
Thomson Investment Management News - Thursday December 06, 09:48 GMT
Tightening the Safety Belt (The Economist)
Banks' capital needs could end up tying them in knots.
Banks' capital needs could end up tying them in knots.
Trade Like This Super-Secret Hedge Fund
TheStreet.com - USA
By Stockpickr Staff The hedge fund industry is a highly secretive, mysterious one. Most funds have only the most simplistic of Web sites accessible only to ...
See all stories on this topic
TheStreet.com - USABy Stockpickr Staff The hedge fund industry is a highly secretive, mysterious one. Most funds have only the most simplistic of Web sites accessible only to ...
TheStreet.com - USA
By Stockpickr Staff The hedge fund industry is a highly secretive, mysterious one. Most funds have only the most simplistic of Web sites accessible only to ...
See all stories on this topic
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Yield Curve Corner
Fed's Bernanke supports mortgage relief plan
Reuters - USA
WASHINGTON, Dec 6 (Reuters) - Federal Reserve Chairman Ben Bernanke on Thursday said a Bush administration plan to aid distressed homeowners should help ...
See all stories on this topic
Reuters - USA
WASHINGTON, Dec 6 (Reuters) - Federal Reserve Chairman Ben Bernanke on Thursday said a Bush administration plan to aid distressed homeowners should help ...
See all stories on this topic
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Natural Disaster Corner
Climate Prediction http://www.nws.noaa.gov/predictions.php
World Meterological Organization http://severe.worldweather.org/
Tornadoes: http://www.disastercenter.com/tornado.htm
Great Sat Pictures of events: http://www.osei.noaa.gov/Events/Current/TRCdaman340_GJ.jpg
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Iranian Situation and Other Man Made Disasters
Intelligence: Iran's nuclear program still is a threat
CNN.com Thu, 06 Dec 2007 11:39 AM PST
The deputy intelligence chief tried Thursday to squash any suggestion that the newly released assessment on Iran's nuclear weapons program indicates Iran is less of a threat.
CNN.com Thu, 06 Dec 2007 11:39 AM PST
The deputy intelligence chief tried Thursday to squash any suggestion that the newly released assessment on Iran's nuclear weapons program indicates Iran is less of a threat.
US presses Iran over missing man
AFP via Yahoo! News Thu, 06 Dec 2007 11:13 AM PST
The US government demanded Thursday more information from Iran about the fate of a missing former FBI agent as his family prepared to travel to Tehran with State Department blessing.
AFP via Yahoo! News Thu, 06 Dec 2007 11:13 AM PST
The US government demanded Thursday more information from Iran about the fate of a missing former FBI agent as his family prepared to travel to Tehran with State Department blessing.
France, Germany back U.S. on Iran
USA Today Thu, 06 Dec 2007 11:32 AM PST
Secretary of State Condoleezza Rice won support on Iran Thursday from two key European allies, France and Germany, whose leaders urged continued pressure on Tehran because of its nuclear program, saying the country remains a danger.
USA Today Thu, 06 Dec 2007 11:32 AM PST
Secretary of State Condoleezza Rice won support on Iran Thursday from two key European allies, France and Germany, whose leaders urged continued pressure on Tehran because of its nuclear program, saying the country remains a danger.
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Opalesque’s Corner
- Opalesque Exclusive: BlackRock launched new Agriculture Fund, `Opportunistic` BlackRock thrives in credit turmoil, assumes the role of clean-up king
- Pershing Square hedge fund may seek listing
- New Launches: ABN Amro creates GBP144m environmental investment fund, allocates to Kenmar fund, Explorer launches Russia L/S fund, seeded by Deutsche
- Awards: Paulson, Citadel, Passport, Moore, Everest, Zweig-DiMenna take top honors in US hedge fund awards
- Indices: PARKER FX index up 1.44% in October, Top Performer: John W. Henry International Foreign Exchange Fund up 10.65%, Spectrem Millionaire Investor Index betrays anxiety
- Opalesque Exclusive: GAIM Invest 2007, Day 2 - on hedge fund capacity being overstated, the industry`s main concerns, investing in the Gulf and finding outperforming managers
- Mortgage-bond trader Vranos may try to reopen Ellington Credit Fund with `side pocket` plan, AIMhedge`s year-old systematic fund enjoys strong start
- Strategies: HFs invested in reinsurance to get second year of good returns, no major hurricane damage, Uncertainties about hedge fund`s ABX and TABX trades, Corporate default rates seen rising in 2008, M&A investment strategy to lose allure
- Hedge fund seeders: Challenged by fall in new managers and rise in minimum investment thresholds, many companies have stalled
- Singapore lures Japanese HFs dismayed by regulator, `Japan is far from being the financial center of Asia`
- Risk Management: Risk managing Japanese hedge funds, Basel II alive and kicking, Report: Global risk and compliance spending to intensify, firms to face new realities with better transparency and coordination
- Quant phenomenon growing on Wall Street, Hyde Park Global: `the future of finance is about engineering and risk control`, Permal`s head of risk says quants unfairly attacked during credit crisis
- People: Ehsani leaving Merrill to start fund, Two directors leave AbCap, new chairman sought
- Pensions: Funds larger than $5bn produce greater returns due to higher allocation to alternatives, Hermes restructures in a bid to focus on third-party assets, invests GBP50m to create multi boutique investment management business, AP7 moves to green via two FoFs mandates, Danish pension fund bets on inflation
- Rating Agencies: Moody`s delays $105bln SIV rating moves, Investors `stunned` by 20,000 ABS ratings cuts, MBIA at greater risk of capital shortfall, Bill Gross said it reflects shadow banking system
- Credit Crunch Update: US Administration comes up with agreement with mortgage industry to offer help to rate freeze, Credit default swaps market drying up, Rabobank, Citigroup SIV sells almost half of assets, State-run Florida pool planning to unfreeze fund today, Thomas H Lee Partners closes $10.1bln LBO fund
- SEC is probing hedge fund investor trading schemes, concerned about underground flow of inside information, Wary of risk as early as 2006, bankers sold shaky mortgage debt , Comment: banks and litigation, Wall Street has much to worry about
- Predictions: Debtwire and Bracewell & Giuliani survey predicts that credit tightening and market decline will continue into 2008, FT market insight: Markets ill-prepared for stagflation, Pimco`s Gross warns of `tumultuous` 2008, sees fed funds rate at 3% or below, breakdown of banking system
- Views: One world, one market: the tight relationships between global markets
- Legal News: Bear Stearns HF losses lead to investor arbitration claims, PAAM receiver, UBS arm in fraud case talks
- Commodities: Investment in commodity indices could jump by fifth to $150bln next year, Gold edges down on firming dollar
- Exchanges/ Trading platforms: Takeover talk boosts Deutsche Börse, but it can wait for a higher bid, NYSE Euronext`s Liffe expands Bclear into Russia, Eastern Europe, Eurex moves towards energy derivatives, Local regulators block Indian commodities markets
- Activist News: Babcock investor Pendvest withdraws calls for asset sales
- News Briefs: McCrery backs $24 bln tax boost on offshore hedge fund pay, ETrade agrees to lock up some order flow through Citadel, Stockbroker Collins Stewart launches stand-alone fund management business, Bank of New York Mellon strengthens Asian alts. team, Goldman Sachs adds an economist in Korea, Sri Lanka rupee zooms amidst record exporter selling, Hong Kong real-estate specialist seeks hedge fund investors
- And Finally. Christmas stories: Long Beach residents do not want a small Christmas tree, Australian thieves leave greetings message
- Logon: http://www.opalesque.com/main.php?act=archive
- Pershing Square hedge fund may seek listing
- New Launches: ABN Amro creates GBP144m environmental investment fund, allocates to Kenmar fund, Explorer launches Russia L/S fund, seeded by Deutsche
- Awards: Paulson, Citadel, Passport, Moore, Everest, Zweig-DiMenna take top honors in US hedge fund awards
- Indices: PARKER FX index up 1.44% in October, Top Performer: John W. Henry International Foreign Exchange Fund up 10.65%, Spectrem Millionaire Investor Index betrays anxiety
- Opalesque Exclusive: GAIM Invest 2007, Day 2 - on hedge fund capacity being overstated, the industry`s main concerns, investing in the Gulf and finding outperforming managers
- Mortgage-bond trader Vranos may try to reopen Ellington Credit Fund with `side pocket` plan, AIMhedge`s year-old systematic fund enjoys strong start
- Strategies: HFs invested in reinsurance to get second year of good returns, no major hurricane damage, Uncertainties about hedge fund`s ABX and TABX trades, Corporate default rates seen rising in 2008, M&A investment strategy to lose allure
- Hedge fund seeders: Challenged by fall in new managers and rise in minimum investment thresholds, many companies have stalled
- Singapore lures Japanese HFs dismayed by regulator, `Japan is far from being the financial center of Asia`
- Risk Management: Risk managing Japanese hedge funds, Basel II alive and kicking, Report: Global risk and compliance spending to intensify, firms to face new realities with better transparency and coordination
- Quant phenomenon growing on Wall Street, Hyde Park Global: `the future of finance is about engineering and risk control`, Permal`s head of risk says quants unfairly attacked during credit crisis
- People: Ehsani leaving Merrill to start fund, Two directors leave AbCap, new chairman sought
- Pensions: Funds larger than $5bn produce greater returns due to higher allocation to alternatives, Hermes restructures in a bid to focus on third-party assets, invests GBP50m to create multi boutique investment management business, AP7 moves to green via two FoFs mandates, Danish pension fund bets on inflation
- Rating Agencies: Moody`s delays $105bln SIV rating moves, Investors `stunned` by 20,000 ABS ratings cuts, MBIA at greater risk of capital shortfall, Bill Gross said it reflects shadow banking system
- Credit Crunch Update: US Administration comes up with agreement with mortgage industry to offer help to rate freeze, Credit default swaps market drying up, Rabobank, Citigroup SIV sells almost half of assets, State-run Florida pool planning to unfreeze fund today, Thomas H Lee Partners closes $10.1bln LBO fund
- SEC is probing hedge fund investor trading schemes, concerned about underground flow of inside information, Wary of risk as early as 2006, bankers sold shaky mortgage debt , Comment: banks and litigation, Wall Street has much to worry about
- Predictions: Debtwire and Bracewell & Giuliani survey predicts that credit tightening and market decline will continue into 2008, FT market insight: Markets ill-prepared for stagflation, Pimco`s Gross warns of `tumultuous` 2008, sees fed funds rate at 3% or below, breakdown of banking system
- Views: One world, one market: the tight relationships between global markets
- Legal News: Bear Stearns HF losses lead to investor arbitration claims, PAAM receiver, UBS arm in fraud case talks
- Commodities: Investment in commodity indices could jump by fifth to $150bln next year, Gold edges down on firming dollar
- Exchanges/ Trading platforms: Takeover talk boosts Deutsche Börse, but it can wait for a higher bid, NYSE Euronext`s Liffe expands Bclear into Russia, Eastern Europe, Eurex moves towards energy derivatives, Local regulators block Indian commodities markets
- Activist News: Babcock investor Pendvest withdraws calls for asset sales
- News Briefs: McCrery backs $24 bln tax boost on offshore hedge fund pay, ETrade agrees to lock up some order flow through Citadel, Stockbroker Collins Stewart launches stand-alone fund management business, Bank of New York Mellon strengthens Asian alts. team, Goldman Sachs adds an economist in Korea, Sri Lanka rupee zooms amidst record exporter selling, Hong Kong real-estate specialist seeks hedge fund investors
- And Finally. Christmas stories: Long Beach residents do not want a small Christmas tree, Australian thieves leave greetings message
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
The Pro Shop
De-Stress for Success
Lisa Scherzer
A psychiatrist teaches traders how to make more money by controlling emotions.
http://www.smartmoney.com/t.cfm?pId=7&mID=282&mDt=12/06/2007&ui=1157312&ctu=%2Ftheproshop%2Findex%2Ecfm%3Fstory%3D20071206
De-Stress for Success
Lisa Scherzer
A psychiatrist teaches traders how to make more money by controlling emotions.
http://www.smartmoney.com/t.cfm?pId=7&mID=282&mDt=12/06/2007&ui=1157312&ctu=%2Ftheproshop%2Findex%2Ecfm%3Fstory%3D20071206
Brothers Claim Millionaire Tobias Was Drugged, Drowned By Wife
WPBF TheWPBFChannel.com via Yahoo! News Thu, 06 Dec 2007 2:42 PM PST
The brothers of millionaire hedge fund manager Seth Tobias are fighting for control of his $25 million estate, claiming that Tobias' wife drugged the former CNBC commentator and helped him drown in their mansion's pool, according to court documents.
WPBF TheWPBFChannel.com via Yahoo! News Thu, 06 Dec 2007 2:42 PM PST
The brothers of millionaire hedge fund manager Seth Tobias are fighting for control of his $25 million estate, claiming that Tobias' wife drugged the former CNBC commentator and helped him drown in their mansion's pool, according to court documents.
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Funnies, Facts, Quotes, etc….
deracinate dee-RAS-uh-nayt, transitive verb:
1. To pluck up by the roots; to uproot.
2. To displace from one's native or accustomed environment.
2. To displace from one's native or accustomed environment.
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Conference, Courses, Books, Papers
Great Research Sites:
Merrill Lynch research Link to full report including important disclosures see example
John Mauldin’s Weekly Analysis
James Altucher’s Website:
Other useful sites:
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Index Corner
The CSFB/Tremont Hedge Fund Index www.hedgeindex.com.
The Cogent Dynamic Averages http://www.cogenthedge.com/home/inv_strategy.asphttp://www.cogenthedge.com/home/inv_strategy.asp
The Dow Jones Indices: http://www.djhedgefundindexes.com/index.cfm?event=viewPremiumContent (free registration)
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Regulatory Info
investor.info@sfc.hkhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.htmlhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.htmlhttp://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.html
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Disclaimer
The information contained in this document does not constitute an offer or solicitation to sell any security or other type of vehicles to or by anyone in any jurisdictions, nor should it be regarded as a contractual document. Under no circumstances should the information provided on this document be considered as financial advice, or as a sufficient basis on which to make investment decisions. The information contained herein has been gathered by Investor DNA, LLC from sources deemed reliable as of the date of publication, but no warranty of accuracy or completeness is given. Investor DNA, LLC is not responsible for and provides no guarantee with respect to any of the information provided herein or through the use of any hypertext link. Past results are no indication of future performance. All information in this newsletter is for educational and informational purposes and does not constitute investment, legal, tax or accounting advice. All materials are the property of the
respective publishers, as referenced by header and appropriate hypertext links.
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