Archive: 02/05/2008
Main News
http://www.finextra.com/fullstory.asp?id=18037Government report alleges risk and security failures at SocGen
A probe into the EUR5bn Société Générale rogue trading scandal by the French government has revealed that the bank was warned last year that its security systems and internal controls were lacking.
A probe into the EUR5bn Société Générale rogue trading scandal by the French government has revealed that the bank was warned last year that its security systems and internal controls were lacking.
It appears as if the who-shall-we-blame tug-of-war just won’t end throughout the international finance community when it comes to the SocGen scandal in which a rogue trader, 31 year-old Jerome Kerviel, lost nearly $7 billion via fraudulent, unauthorized trading.
Nimble firms to shine in challenging year
Source: Pensions&Investments
Hedge funds that thrive on market volatility, use trading strategies that adroitly exploit technical forces and can find mispriced gems after sifting through a massive dislocation in global credit markets will be 2008's winners, industry insiders predict. More... <http://www.hedgefund-index.com/newstoday.asp>
Source: Pensions&Investments
Hedge funds that thrive on market volatility, use trading strategies that adroitly exploit technical forces and can find mispriced gems after sifting through a massive dislocation in global credit markets will be 2008's winners, industry insiders predict. More... <http://www.hedgefund-index.com/newstoday.asp>
Kamakura Corporation announced last week that its monthly index of troubled public companies increased sharply in January, rising 1.9 percent to 12.1 percent of the global public company universe. Current credit conditions are barely better than the 13.4 percent average for the index in 18-year period since January 1990. Current credit conditions are better than only 51.5 percent of the monthly periods since the start of the index in January, 1990.
US credit card, auto loan ABS' to be hit by subprime mortgage ...
Forbes - NY,USA
MUMBAI (Thomson Financial) - Fitch Ratings said as the fallout from the subprime mortgage crisis continues, the US economy is showing more cracks which will ...
Forbes - NY,USA
MUMBAI (Thomson Financial) - Fitch Ratings said as the fallout from the subprime mortgage crisis continues, the US economy is showing more cracks which will ...
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Special Report
What the biggest hedge funds did (or didn't do) to attract the attention (and assets) of institutional investors
Transition Study: U.S. ABS Credit Quality Improved In 2007, But Collateral Performance May Be Sliding
Last year was certainly difficult for the structured finance sectors related to the U.S. housing market. In our view, the weakening economy and possible increases in unemployment will likely test the U.S. asset-backed securities (ABS) sector's stability in 2008. Credit spreads on new issuances of credit card and auto ABS continue to be at their widest, suggesting that the market may be wary about the future performance of these securities. However, consumer bankruptcies have been low, and collateral losses in credit card and auto ABS portfolios are currently within our stressed expectations.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAYTTQTVsLgHxhilpuHQJhuV2VA
Last year was certainly difficult for the structured finance sectors related to the U.S. housing market. In our view, the weakening economy and possible increases in unemployment will likely test the U.S. asset-backed securities (ABS) sector's stability in 2008. Credit spreads on new issuances of credit card and auto ABS continue to be at their widest, suggesting that the market may be wary about the future performance of these securities. However, consumer bankruptcies have been low, and collateral losses in credit card and auto ABS portfolios are currently within our stressed expectations.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAYTTQTVsLgHxhilpuHQJhuV2VA
RMBS Trends: Amid Volatility, U.S. Third-Quarter 2007 Prime Jumbo Securitization Volume Is Slightly Down
Even as falling housing prices and the effects of defaults on subprime loans rippled through financial markets, the volume of U.S. prime jumbo securitization that we rate fell only slightly during third-quarter 2007. This follows a much steeper drop in the previous quarter. Third-quarter securitization volume declined about 2% to $35 billion from $35.8 billion in second-quarter 2007. This came on the heels of a substantial fall from first-quarter 2007's $48.3 billion.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAYTTQTVsLgHxhilpuHQJhuV2VC
Even as falling housing prices and the effects of defaults on subprime loans rippled through financial markets, the volume of U.S. prime jumbo securitization that we rate fell only slightly during third-quarter 2007. This follows a much steeper drop in the previous quarter. Third-quarter securitization volume declined about 2% to $35 billion from $35.8 billion in second-quarter 2007. This came on the heels of a substantial fall from first-quarter 2007's $48.3 billion.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAYTTQTVsLgHxhilpuHQJhuV2VC
This is the second in a series of three articles about the opportunities that have emerged in the currency market for managers making bets on the dollar. NEW YORK (HedgeWorld. ......
LONDON (HedgeWorld.com)—Pension fund assets worldwide reached $26 trillion by the end of 2006, up 14% from the 2005 year-end figure of $22.8 trillion, according to a research report from IFSL Research, an arm of U. ......
The “mini-perfect storm” that saw equity markets slump and interest rates decline in January should swell the ranks of pension funds adding liability-driven investing to their “to-do” lists this year,...
Face to Face
After leading CalPERS and British Telecom funds, Nuveen's president looks to make the manager attractive to institutional investors.
Chinese Economy Begins To Overheat
The National Statistics Bureau released on Jan. 29 China’s macro economic climate index for Dec. 2007, which, at 121.3, is roughly at the same level with the previous month, marking it the fifth consecutive month that the economy has stayed in the prone-overheating “yellow light” range.Read more
The National Statistics Bureau released on Jan. 29 China’s macro economic climate index for Dec. 2007, which, at 121.3, is roughly at the same level with the previous month, marking it the fifth consecutive month that the economy has stayed in the prone-overheating “yellow light” range.Read more
The Next Asset Bubble
Infrastructure investing is growing in popularity as stocks and real estate tumble. Read More
Infrastructure investing is growing in popularity as stocks and real estate tumble. Read More
by David Merkel
Platinum hits record, palladium at 6-year high
February 04, 2008 03:55 AM ET
SINGAPORE (Reuters) - Platinum roared to another record high
on Monday as supply concerns persisted in main producer South
Africa, lifting sister-metal palladium to its best level in
six years and overshadowing gold.
http://links.reuters.com/r/7EU6K/H30MO/0R1OQ/32QCG/DTWQ5/YT/t
February 04, 2008 03:55 AM ET
SINGAPORE (Reuters) - Platinum roared to another record high
on Monday as supply concerns persisted in main producer South
Africa, lifting sister-metal palladium to its best level in
six years and overshadowing gold.
http://links.reuters.com/r/7EU6K/H30MO/0R1OQ/32QCG/DTWQ5/YT/t
U.S. Concern Over Economy Is Highest in Years
Public views of the national economy are now more negative than at any point in nearly 15 years, and few people believe that the kind of stimulus plan being devised by President Bush and Congress is enough to stave off or soften a recession, according to a new Washington Post-ABC News poll.
(By Michael Abramowitz and Jon Cohen, The Washington Post)
Public views of the national economy are now more negative than at any point in nearly 15 years, and few people believe that the kind of stimulus plan being devised by President Bush and Congress is enough to stave off or soften a recession, according to a new Washington Post-ABC News poll.
(By Michael Abramowitz and Jon Cohen, The Washington Post)
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Yield Curve Corner
Bernanke Ease Makes Bulls out of Dollar Bears Seeing New Growth
Bloomberg - USA
4 (Bloomberg) -- Ben S. Bernanke's decision to lower interest rates 1.25 percentage points last month will end the dollar's two-year slide, according to the ...
Bloomberg - USA
4 (Bloomberg) -- Ben S. Bernanke's decision to lower interest rates 1.25 percentage points last month will end the dollar's two-year slide, according to the ...
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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/VSHtungurahua132_G12.jpg
Fund Warms to Weather
Financial Times - Monday February 04, 09:37 GMT
Financial Times - Monday February 04, 09:37 GMT
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Iranian Situation and Other Man Made Disasters
Iran opens its first space centre, riling the US
AFP via Yahoo! News Mon, 04 Feb 2008 9:25 AM PST
Iran on Monday fired a rocket into space to mark the opening of its first space centre, triggering swift condemnation from the United States amid continued tensions over the Iranian nuclear drive.
AFP via Yahoo! News Mon, 04 Feb 2008 9:25 AM PST
Iran on Monday fired a rocket into space to mark the opening of its first space centre, triggering swift condemnation from the United States amid continued tensions over the Iranian nuclear drive.
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Opalesque’s Corner
- Deutsche Bank acquires HedgeWorks, Hedge fund administrator Equinoxe announces significant minority investment by XL Capital
- Opalesque Exclusive: Guggenheim Partners sponsors former Deerfield execs to set up credit derivatives focused fixed income shop
- New Funds: Investcorp to kick off alternative beta platform, MJX to haunch hedge fund, BroadStreet launches Brazil ABL strategy, Tech PE venture firm launches hedge fund, Toscafund preps small cap hedge fund
- Opalesque Exclusive: Emergent AM`s emerging market funds up 2.5%, 4.3% in January, African Agricultural Land Fund launch nears, UK farm land priced predicted to rise 15% this year as investors join land rush
- Frontier markets lure and reward hardy investors, Wambia Capital plans new Africa hedge fund
- PCE`s latest launch, the Cumulus Climate Fund, will bet on financial impacts of global warming, Hot new opportunities in weather derivatives market (AUM $35bln in 2007)
- Opalesque Exclusive: Swiss/German options trading hedge fund surfs the volatility smile with a little help from the Greeks
- Performance / AUM: Stock market woes take toll on hedge funds, last month was worst for HFs since August 1998, Canadian funds that did not lose money in the last bear market, Nakoma`s L/S fund sees AUM rise to $135m
- Manager Profiles: Ermitage with an eye on the next phase: getting involved with FoHFs groups, Peloton fund sets winning pace, returned 87% in 2007, managers preparing to launch a 3rd fund
- Research: The lifecycle of hedge funds, non-directional funds slow (down) faster
- Key Asset Management CIO criticizes hedge fund `jargon`
- United Capital`s Devaney returns to subprime after yacht sale
- Hedge fund seeders: Looking for the right fit as options vastly differ, RBC Capital Markets launched the RBC Emerging Manager Allocator platform
- SocGen Update: SocGen to cut equity derivatives business 30%, SocGen prepares strategy, Credit Agricole may bid, Bank Chief Daniel Bouton, Kerviel`s `entire hierarchy` to be questioned by judges, French government probe into SocGen`s scandal expected to report today that control over the bank`s trading operations was too lax, Comment: Not more laws but new risk culture, awareness and responsibilities for board and senior management, SocGen expands Asia commodities, energy business despite loss
- Bond Insurers: Silverstreet sees opportunity in bond insurer woes, Banks join to rescue bond insurer Ambac, Danillo`s rescue plans
- Credit Crunch Update: Update: U.S. prosecutors targets UBS in probe, examine pricing of mortgages, new focus on Merrill, Merrill Lynch CEO blames lack of oversight of trading desks for writeoffs, Fitch may downgrade $139bln of US subprime RMBS
- ETFs / 130/30 Funds: The exchange-traded-fund industry is about to launch a "130/30" ETF, ETF industry gained 10% in AUM in Q4, now at $608bln, 2007 data suggests 130/30 funds outperform the S&P, HSBC says UK FSA is right expressing concerns about appropriate skills and systems of asset managers launching 130/30 funds, will compete with hedge funds (the prime brokers` darlings) over short stock inventory
- UBS investors to vote on alternative proposal to Singapore/Middle East capital plan
- Goldman halves principal strategies group in move
- People: Goldman Sachs in prime broking hiring spree in Hong Kong and Tokyo, Deutsche Bank`s Martin Fisch leaves firm, might set up hedge fund, CEO Capital seeks Tokyo-based sales people
- Legal: Massachusetts sues Merrill over selling unsuitable subprime mortgage-related securities to city of Springfield, Update: Bayou creditors to probe Goldman Sachs brokerage unit
- Regulators: Regulators to scrutinise rating agencies in Amsterdam today, UK FSA expects rise in fraudulent trading, confident its anti-fraud monitoring system will cope, UK corporate fraud may hit a record high, Norwegian rules and regulations would have prevented sub-prime crisis, says Norwegian FSA
- Currency Trading: Two new carry trade themes are emerging, Bernanke makes bulls from dollar bears, investors now focused on relative growth prospects
- 7th Wall Street Green Trading Summit to examine opportunities within evolving markets
- Exchanges: AMEX members revolt against NYSE deal
- Europe: UK manager recommends FoHFs for Isa
- Northern Rock Update: Suitors to submit offers to UK gov today, final decision due next week, list of key people, chronology of events, Branson fails to woo Northern Rock investors
- Asia: Halbis` Richard Wong stays bullish on China, Mumbai firm enters hedge fund advisory business,
- Barclays Wealth offers clients personality test to reveal optimal investment strategy
- Sovereign Wealth Funds: Singapore wealth fund takes the long view, EU`s McCreevy says sovereign funds good for investors
- Activist News: Templeton increases pressure on Generali, Pardus lost almost quarter of value as airlines bets sour, no plan to back down, Events conspire to make activists think again as investors worry sector will be hurt this year
- News Briefs: Countrywide COO to lead BofA mortgage business, The asset management industry is ripe for consolidation according BlackRock and Lazard, Yahoo may consider Google alliance, Deutsche raises stake in China`s PE Harvest Fund to 30%
- ...And finally: The dumbest ever quiz answers (a must read)
- Logon: http://www.opalesque.com/main.php?act=archive
- Opalesque Exclusive: Guggenheim Partners sponsors former Deerfield execs to set up credit derivatives focused fixed income shop
- New Funds: Investcorp to kick off alternative beta platform, MJX to haunch hedge fund, BroadStreet launches Brazil ABL strategy, Tech PE venture firm launches hedge fund, Toscafund preps small cap hedge fund
- Opalesque Exclusive: Emergent AM`s emerging market funds up 2.5%, 4.3% in January, African Agricultural Land Fund launch nears, UK farm land priced predicted to rise 15% this year as investors join land rush
- Frontier markets lure and reward hardy investors, Wambia Capital plans new Africa hedge fund
- PCE`s latest launch, the Cumulus Climate Fund, will bet on financial impacts of global warming, Hot new opportunities in weather derivatives market (AUM $35bln in 2007)
- Opalesque Exclusive: Swiss/German options trading hedge fund surfs the volatility smile with a little help from the Greeks
- Performance / AUM: Stock market woes take toll on hedge funds, last month was worst for HFs since August 1998, Canadian funds that did not lose money in the last bear market, Nakoma`s L/S fund sees AUM rise to $135m
- Manager Profiles: Ermitage with an eye on the next phase: getting involved with FoHFs groups, Peloton fund sets winning pace, returned 87% in 2007, managers preparing to launch a 3rd fund
- Research: The lifecycle of hedge funds, non-directional funds slow (down) faster
- Key Asset Management CIO criticizes hedge fund `jargon`
- United Capital`s Devaney returns to subprime after yacht sale
- Hedge fund seeders: Looking for the right fit as options vastly differ, RBC Capital Markets launched the RBC Emerging Manager Allocator platform
- SocGen Update: SocGen to cut equity derivatives business 30%, SocGen prepares strategy, Credit Agricole may bid, Bank Chief Daniel Bouton, Kerviel`s `entire hierarchy` to be questioned by judges, French government probe into SocGen`s scandal expected to report today that control over the bank`s trading operations was too lax, Comment: Not more laws but new risk culture, awareness and responsibilities for board and senior management, SocGen expands Asia commodities, energy business despite loss
- Bond Insurers: Silverstreet sees opportunity in bond insurer woes, Banks join to rescue bond insurer Ambac, Danillo`s rescue plans
- Credit Crunch Update: Update: U.S. prosecutors targets UBS in probe, examine pricing of mortgages, new focus on Merrill, Merrill Lynch CEO blames lack of oversight of trading desks for writeoffs, Fitch may downgrade $139bln of US subprime RMBS
- ETFs / 130/30 Funds: The exchange-traded-fund industry is about to launch a "130/30" ETF, ETF industry gained 10% in AUM in Q4, now at $608bln, 2007 data suggests 130/30 funds outperform the S&P, HSBC says UK FSA is right expressing concerns about appropriate skills and systems of asset managers launching 130/30 funds, will compete with hedge funds (the prime brokers` darlings) over short stock inventory
- UBS investors to vote on alternative proposal to Singapore/Middle East capital plan
- Goldman halves principal strategies group in move
- People: Goldman Sachs in prime broking hiring spree in Hong Kong and Tokyo, Deutsche Bank`s Martin Fisch leaves firm, might set up hedge fund, CEO Capital seeks Tokyo-based sales people
- Legal: Massachusetts sues Merrill over selling unsuitable subprime mortgage-related securities to city of Springfield, Update: Bayou creditors to probe Goldman Sachs brokerage unit
- Regulators: Regulators to scrutinise rating agencies in Amsterdam today, UK FSA expects rise in fraudulent trading, confident its anti-fraud monitoring system will cope, UK corporate fraud may hit a record high, Norwegian rules and regulations would have prevented sub-prime crisis, says Norwegian FSA
- Currency Trading: Two new carry trade themes are emerging, Bernanke makes bulls from dollar bears, investors now focused on relative growth prospects
- 7th Wall Street Green Trading Summit to examine opportunities within evolving markets
- Exchanges: AMEX members revolt against NYSE deal
- Europe: UK manager recommends FoHFs for Isa
- Northern Rock Update: Suitors to submit offers to UK gov today, final decision due next week, list of key people, chronology of events, Branson fails to woo Northern Rock investors
- Asia: Halbis` Richard Wong stays bullish on China, Mumbai firm enters hedge fund advisory business,
- Barclays Wealth offers clients personality test to reveal optimal investment strategy
- Sovereign Wealth Funds: Singapore wealth fund takes the long view, EU`s McCreevy says sovereign funds good for investors
- Activist News: Templeton increases pressure on Generali, Pardus lost almost quarter of value as airlines bets sour, no plan to back down, Events conspire to make activists think again as investors worry sector will be hurt this year
- News Briefs: Countrywide COO to lead BofA mortgage business, The asset management industry is ripe for consolidation according BlackRock and Lazard, Yahoo may consider Google alliance, Deutsche raises stake in China`s PE Harvest Fund to 30%
- ...And finally: The dumbest ever quiz answers (a must read)
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
The Giants upset the Patriots to win a thrilling Super Bowl and leave New England one game short of perfection. Eli Manning continued his recent superb play, outdueling Tom Brady, a victim of the relentless Giants defense.
http://blogs.wsj.com/dailyfix/?mod=djemFIX
http://blogs.wsj.com/dailyfix/?mod=djemFIX
GIANT PIECE OF HISTORY
By PAULSCHWARTZ
GLENDALE, Ariz. - The imperfect team picked the perfect time to deny perfection.There was 2:39 remaining last night in Super Bowl XLII and the Giants had fought the good fight, the gallant fight but after all their pummeling of Tom Brady and...
full story: http://www.nypost.com/seven/02042008/sports/giants/giant_piece_of_history_71081.htm
By PAULSCHWARTZ
GLENDALE, Ariz. - The imperfect team picked the perfect time to deny perfection.There was 2:39 remaining last night in Super Bowl XLII and the Giants had fought the good fight, the gallant fight but after all their pummeling of Tom Brady and...
full story: http://www.nypost.com/seven/02042008/sports/giants/giant_piece_of_history_71081.htm
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Funnies, Facts, Quotes, etc….
magniloquent mag-NIL-uh-kwent, adjective:
Lofty or grandiose in speech or expression; using a high-flown style of discourse; bombastic.
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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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