Archive: 02/22/2008
Main News
Economic Stimulus Package: Will It Work, and for Whom?
Congress
and the White House recently settled on an economic stimulus package with
unusual speed, pushing the throttle to pull the economy out of a nosedive.
Is this just election-year grandstanding, or does economic stimulus really
work? While some experts argue that priming the economy now is unnecessary
or even counter-productive, others support the $168 billion package and its
emphasis on low and moderate-income recipients. As for the health of the
economy overall, experts agree that no economic boom is in the near-term
forecast.
http://knowledge.wharton.upenn.edu/article/1904.cfm
BNP
distances itself from subprime mortgage crisis
Financial Times -
London,England,UK
By Scheherazade Daneshkhu in Paris BNP Paribas yesterday
sought to distance itself from other banks hit by the US subprime crisis,
saying it had no need for ...
SocGen posts record loss, may take more
writedowns
February 21, 2008 07:23 AM ET
PARIS (Reuters) - Societe Generale
confirmed a record fourth-quarter
loss after absorbing a huge rogue
trading scandal that has made
France's second-biggest listed bank a
potential takeover
target.
http://links.reuters.com/r/BJHVE/IPMUZ/4PB2R/WGEI6/WKWU7/YT/t
MARKIT
TO LAUNCH MULTI-DEALER VALUATIONS PLATFORM
UK market data vendor Markit
Group is working with six Wall Street banks to launch a global, multi-bank,
cross-asset client valuations platform.
More on this story:
http://www.finextra.com/fullstory.asp?id=18117
Fitch: Unrealized Subprime
Losses For Insurers May Reach $8 Billion
Wall Street Journal - USA
...
though "several companies are being more closely monitored due to either
significant CDO exposure or more significant investment in subprime"
securities ...
How to Fix the Rating Agencies, Part II
Regulators will
recommend ways the credit rating agencies can avoid missteps — less than
two years after a law to do just that was passed.
95 Ratings Lowered On 13
U.S. CDO Of ABS Transactions; $10.773 Billion In Issuance Affected
We
lowered our ratings on 95 tranches from 13 U.S. cash flow and hybrid
collateralized debt obligation (CDO) transactions. The downgraded tranches
have a total issuance amount of $10.773 billion. Of the lowered ratings,
all but eight were on CreditWatch with negative implications before the
downgrade. All of the affected transactions are mezzanine structured
finance (SF) CDOs of asset-backed securities (ABS), which are CDOs of ABS
collateralized in large part by mezzanine tranches of residential
mortgage-backed securities (RMBS) and other SF securities.
To learn more,
click or copy and paste the URL
below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAACTQTVsLgHxhilpuHQJhuV2VW
84
Ratings On 15 U.S. CDOs Of ABS Placed On Watch Neg; $6.654 Billion In
Issuance Affected
We placed our ratings on 84 tranches from 15 U.S. cash
flow and hybrid collateralized debt obligations of asset-backed securities
(CDOs of ABS) on CreditWatch with negative implications. The CDO tranches
with ratings placed on CreditWatch negative have a total issuance amount of
$6.654 billion. All are backed in part by recent-vintage residential
mortgage-backed securities (RMBS) either by directly holding notes from the
RMBS transactions or by holding notes from other CDO transactions that are
in turn collateralized by RMBS.
To learn more, click or copy and paste the
URL
below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAACTQTVsLgHxhilpuHQJhuV2VY
Finance
and Investment
Victimizing the Borrowers: Predatory Lending's Role in the
Subprime Mortgage Crisis
As fallout from the subprime lending crisis
continues, a number of remedies have been proposed to deal with it. One is
legislation to curtail predatory lending, which is generally thought to be
a factor behind the issuing of so many subprime loans to borrowers with
poor credit. What qualifies as predatory lending? And what are the
conditions that make it flourish? Wharton finance professors David Musto,
Philip Bond and Bilge Yilmaz analyze predatory lending in a new paper
titled, "Predatory Lending in a Rational World."
http://knowledge.wharton.upenn.edu/article/1901.cfm
What The Top 10
Trends For U.S. Commodities And Basic Industries Mean For All
Corporates
For better or worse, these are interesting times for the
industry sectors that comprise commodities and basic industries. Credit
prospects for 2008 are decidedly mixed. A couple of things, however, are
for sure: these sectors are likely to feel some effects of the credit
squeeze and economic downturn and the trends that are emerging for
commodities and basic industries will also play out in other corporate
sectors this year. Overall, our top concern is the impact and consequences
of the unprecedented disruptions in the credit markets.
To learn more,
click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQAACTQTVsLgHxhilpuHQJhuV2VB
Goldman's
Shredded Wheat
Bloomberg - Wednesday February 20, 11:45 GMT
Market Risk -
Covering Carbon Credit Projects Via Political Risk Insurance
Zurich
yesterday announced it is providing political risk insurance (PRI) for
carbon credit projects. This is the first time Zurich has offered coverage
for these types of “green” projects in emerging markets, reflecting the
Group’s recently launched global climate initiative focusing on the
myriad of risks associated with climate change.
Full Story...
Economic
Risk - Study Says Recession Unlikely, Housing Crisis Almost Over
A U.S.
recession is highly unlikely and the housing crisis is almost over,
according to a report released yesterday by The Conference Board, a New
York, N.Y.-based research group.
Full Story...
Asian markets pummel hedge
fund Venus Acumen
Wed, 20 Feb 2008, 21:44
Reuters
Falling Asian markets
have pummeled returns for hedge fund Venus Acumen Asia Fund, a Boston-based
fund managed by Sandy Mehta, a former investment manager at Wellington
Management Co and Putnam Investments. The fund posted negative returns of
9.21 per cent in January, its worst monthly performance since its inception
in September 2004, according to a Feb 15 note to investors.
Ackman plan to
hive off municipal units
FT.com via Yahoo! News Wed, 20 Feb 2008 4:50 PM
PST
William Ackman, hedge fund manager and ardent critic of the bond
insurers, has submitted to banks and regulators a proposal that would split
the companies' businesses and overhaul their capital management.
HFs not
threatened by clones
Wed, 20 Feb 2008, 14:47
Euromoney Institutional
Investor
Hedge fund replicators for the most part are seen as
complementing the real thing, not replacing it. According to a survey by
AllAboutAlpha and Terrapin, that was the view held by more than 70% funds
of hedge funds and long-only managers, while slightly more than half of
consultants surveyed saw them as less complementary and 60% of hedge funds
viewed them as competitive. The survey found that respondents overall
considered alternative beta and hedge fund clones mostly as a tool for
creating new product, while progressively smaller percentages valued them
as a benchmark, a way for managing cash, for asset allocation, and for
setting hurdle rates.
Thursday Outlook: The Inflation Con Game
by David
Fry
The Return of Stagflation?
by Barry Ritholtz
HFs Worry About Bank
Blowups
Is Clinton Hating on Hedge Funds?
New York Times Blogs - New
York,NY,USA
Her daughter, Chelsea, even works for a hedge fund, Avenue
Capital Group. (Here’sa list of other hedge fund managers who have
donated to her campaign. ...
See all stories on this
topic
_________________________________________________________________________
Yield
Curve Corner
For Some Economists, The Maestro Can Do No Wrong
by Tim
Iacono
The Fed's New Operating Tool - The TAF
by John M. Mason
Orchid
Mania Sweeps the Botanical Garden
BY KATE TAYLOR - Staff Reporter of the
Sun
Orchid mania is well-documented, from the 36,000 square feet of
greenhouses that the sixth Duke of Devonshire devoted to his vast
collection to the obsessed poacher of Susan Orlean's "The Orchid Thief." So
it's no wonder that the New York
Botanical...
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Natural
Disaster
Corner
http://www.noaa.gov/
http://www.sec.noaa.gov/Data/index.html
http://tsunami.gov/
http://earthquake.usgs.gov/eqcenter/
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/DSTmiddleeast052_N7.jpg
6.3
Earthquake Hits Nevada
A magnitude 6.3 earthquake hits Nevada.
MORE
DETAILS:
_________________________________________________________________________
Iranian
Situation and Other Man Made
Disasters
http://www.globalincidentmap.com/home.php
http://icasualties.org/oif/
Group
claims Iran speeding up nuke plans
AP via Yahoo! News Thu, 21 Feb 2008 0:53
AM PST
An exiled Iranian opposition group claimed Wednesday that Tehran was
speeding up a program to develop nuclear weapons. "The Iran regime entered
a new phase in its nuclear project," said Mohammad Mohaddessin of the
Paris-based National Council of Resistance of Iran.
Iran: U.S. Blamed For
Mughniyah Bomb
February 21, 2008 1513 GMT
Iranian Supreme Leader Ayatollah
Ali Khamenei's top military adviser Gen. Yahya Rahim Safavi
on...
http://www.stratfor.com/sitrep/iran_u_s_blamed_mughniyah_bomb
_________________________________________________________________________
Opalesque’s
Corner
- Opalesque Exclusive: New activist hedge fund `2.0` embraces
blogs, YouTube videos, wikis, other social networking tools
- Fund
launches: Update: Eden Rock to launch distressed opportunities fund in
March, Front Street preps agriculture hedge fund, Nedgroup debuts
uncorrelated FoHFs, Canadian hedge fund targets Europe with
Luxembourg-domiciled version of funds
- BNP Paribas partners with Tiberius
to develop actively managed commodity structured products
- Performance:
Opalesque Exclusive: Update: Asian Currency fund returns 1.52% in January
and 28.35% in 2007, Asian markets crush hedge fund Venus Acumen, down 9%
in January, BlueBay rises most since IPO on asset-gain outlook, lower hedge
fund returns at 5.9% average for 2007, Some of Passport Capital` successful
bets, Equity hedge funds plummet in January
- Aberdeen $615m multi-asset
fund to invest 20% in alternatives
- Reports: Report says while CDOs
contracted, hedge funds take advantage of new environment through `rush to
raise new funds and complete strategic minority transactions`, Jefferies
Putnam Lovell: alternative managers will account for a record proportion of
M&A deals in 2008
- SocGen Update: Internal investigation shows controls
lacked depth, SocGen scandal changes mindset at banks, says IT-exec,
Document says trader`s rogue bets began in summer
- Credit Crunch Update:
Fresh credit market turmoil as cost of debt protection against default
surged to all-time highs, Study says recession unlikely, housing crisis
almost over, Structured notes sales hold up despite credit crunch, Credit
Suisse says traders` pricing errors will cause $2.85bln in write-downs,
Ackman proposes bond insurer split, policyholder veto, MBIA criticizes
bond-insurer plan
- Institutions: SFERS seeks alternative investment
consultant, Nestle pension scheme plans more alternatives
- People:
Caliburn Capital Partners announces appointment of new partners, RiverEdge
Capital Partners hires former BofA managing director, Strategic Global
Advisors hires experienced international portfolio manager to strengthen
investment capabilities, Hall Capital Partners names new president, Credit
Suisse VP to join Concordia
- EDHEC, Morgan Stanly create research chair in
alternatives for institutional investors
- Legal: CFTC files second amended
complaint charging Philip J. Baker and Lake Shore, Pimco`s power in
treasuries prompts suit from hedge fund and investors, Update: Ex-Refco
chief faces civil fraud charges,
- Regulators: International regulators
step up pressure over CDS settlements, SEC inspector general pledges future
investigations will be thorough and credible
- Exchanges: Indian
commodities exchange plans IPO, Indian exchange files prospectus for float,
Brazilian exchanges initiate merger talks
- Environmental Trading News:
Japan considers emissions cap and trade system, T. Boone Pickens plans huge
wind project
- Commodities: Are speculators driving the agriculture
market?, Oil returns to contango (as does everything else), Oil`s rise
back above $100 catches hedge funds short, The only chart you need to
understand the gold price, China surpasses U.S. as world`s No. 2 gold
jewelry consumer
- Asia: IFIL invests $90m in Hong Kong FoHF manager Vision
Investment, Ivy Asset Management opens Hong Kong office, Templeton buys 49%
of Vietcombank Fund Management
- Greenwich Associates` 2007 Asian Equity
Investors Study: Electronic trading in Asia is picking up, hedge funds
lead the way, equity markets` projections are optimistic
- Other Voices:
Law firm says Jersey paves the way for alternative investment funds with
new order
- Barbarian prepares new movies, teams with producers
- Northern
Rock Update: The top 10 Northern Rock losers, Nationalisation `excellent
news` for Northern Rock trustees, A&L tries to bypass the traps that
ensnared Northern Rock
- Activist News: Unisys agrees to delay its annual
meeting to further talk with Millbrook, TransAlta acts under hedge fund
pressure, TCI to take Japan to court if J-Power bid rebuffed, Hedge fund to
launch proxy fight with ExpressJet
- News Briefs: KKR Financial delays debt
payments, starts negotiations, Hillary Clinton attacks hedge fund managers,
Contemporary art show draws hedge funds, movie stars in N.Y. ,
International economic update from Dallas Fed: Global economy strong but
slowing, charts, Basel paper on liquidity risk: management and supervisory
challenges, Porsche to use Eur10bln credit line for investments, Credit
Agricole AM forms JV in Saudi Arabia
- And Finally. NYC bank gets confused,
gives $2m to wrong man
- Logon:
http://www.opalesque.com/main.php?act=archive
_________________________________________________________________________
Misc.
Items of Interest
The Superrich Are Totally Psyched About The Recession
New York Magazine - Thursday February 21, 08:05 GMT
Investors Launch
Microfinance Group
A group of buysiders launched Tuesday in New York the
International Association of Microfinance Investors (IAMFI), an
organization dedicated to the growing sector.Read more
* Self-healing
rubber bounces back *
A material that is able to self-repair even when
sliced in two is invented by French researchers.
Full
story:
http://news.bbc.co.uk/go/em/-/1/hi/sci/tech/7254939.stm
_____________________________________________________________________
Funnies,
Facts, Quotes, etc….
relegate REL-uh-gayt, transitive verb:
1. To
assign to an inferior position, place, or condition.
2. To assign to an
appropriate category or class.
3. To assign or refer (a matter or task, for
example) to another for appropriate action.
4. To send into exile; to
banish.
_________________________________________________________________________
Conference,
Courses, Books, Papers
Great Research
Sites:
http://www.highbeam.com/
http://www.dealbreaker.com/
http://seekingalpha.com/
www.riskmterics.com
http://www.allaboutalpha.com/blog/
Merrill
Lynch research Link to full report including important disclosures see
example
http://rsch1.ml.com/9093/24013/ds/78763025.PDF
John Mauldin’s
Weekly Analysis
www.frontlinethoughts.com
James Altucher’s
Website:
www.stockpickr.com
Other useful
sites:
www.flyonthewall.com
www.gloriamundi.com
_________________________________________________________________________
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)
HFRX Indices
https://www.hedgefundresearch.com/hfrx_reg/index.php?fuse=login&1170880431
http://www.cogenthedge.com/home/inv_strategy.asp
_________________________________________________________________________
Regulatory
Info
Commodity Futures Trading Commission (CFTC)
Division of Enforcement:
+1
866-FON-CFTC
http://www.cftc.gov/enf/enfform.htm
http://www.cftc.gov/enf/enfform.htm
Securities
and Exchange Commission (SEC)
e-mail:
enforcement@sec.gov
http://www.sec.gov/complaint.shtml
http://www.sec.gov/complaint.shtml
Autorité
des marchés financiers (AMF)
Ombudsman's office: +33 (0)1
5345-6464
French:
http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=fr&Id_Tab=0
English:
http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=en&Id_Tab=0
http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=en&Id_Tab=0
Financial
Services Authority
(FSA)
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
Financial
Ombudsman Service: 0845 080 1800, outside the UK: +44 (0)20 7964
1000
complaint.info@financial-ombudsman.org.uk
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
Hong
Kong Securities and Futures Commission
(SFC)
http://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.html
Investor
Hotline:
852-2840-9333
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
_________________________________________________________________________
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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