Archive: 03/05/2008
Main News
PIMCO's Gross buys $1.5 bln of US municipal bonds
Reuters - USA
Gross, who manages the $120 billion Pimco Total Return Fund, responded to Reuters in an email. He declined to provide the average yields he paid. ...
Reuters - USA
Gross, who manages the $120 billion Pimco Total Return Fund, responded to Reuters in an email. He declined to provide the average yields he paid. ...
US hedge fund raises over $100m to avert collapse
Blue River Asset Management, a US hedge fund, has raised more than $100m (?65.8m) from existing and new investors to avert collapse. (The Wall Street Journal)
http://mail2.efnmail.co.uk/r/344743/MTk4MTI1OjE2NTkz/
Blue River Asset Management, a US hedge fund, has raised more than $100m (?65.8m) from existing and new investors to avert collapse. (The Wall Street Journal)
http://mail2.efnmail.co.uk/r/344743/MTk4MTI1OjE2NTkz/
by Thomas Tan
Hedge fund sues Citigroup, Wachovia alleging false claims on CDO ...
Forbes - NY,USA
Citi and Wachovia had insured the CDOs by buying credit default swaps (CDS) from the hedge fund. A CDS contract is a credit derivative product that gives ...
Forbes - NY,USA
Citi and Wachovia had insured the CDOs by buying credit default swaps (CDS) from the hedge fund. A CDS contract is a credit derivative product that gives ...
Moody's Foresees No CDO Recovery in '08
Forbes - NY,USA
After issuance of CDOs peaked at nearly $350 billion in 2006, volume slowed down last year. The newfound distaste for risk investors developed scared buyers ...
Forbes - NY,USA
After issuance of CDOs peaked at nearly $350 billion in 2006, volume slowed down last year. The newfound distaste for risk investors developed scared buyers ...
Global Issuers
Default, Transition, and Recovery: 2008 Basel II Update Of Global Ratings
The Basel II international accord provides guidelines and a conceptual framework necessary for financial institutions to determine their minimum regulatory capital on an ongoing basis. As per the guidelines in this agreement, credit ratings may be used to assign risk weights under the so-called standardized approach, with higher ratings corresponding to lower risk weights, and vice versa. Our data offer market participants a way to benchmark their portfolios under the guidelines stipulated by the standardized approach as articulated in Pillar 1 of the accord.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQABTBQTVsLgHxhilpuHQJhuV2VT
Default, Transition, and Recovery: 2008 Basel II Update Of Global Ratings
The Basel II international accord provides guidelines and a conceptual framework necessary for financial institutions to determine their minimum regulatory capital on an ongoing basis. As per the guidelines in this agreement, credit ratings may be used to assign risk weights under the so-called standardized approach, with higher ratings corresponding to lower risk weights, and vice versa. Our data offer market participants a way to benchmark their portfolios under the guidelines stipulated by the standardized approach as articulated in Pillar 1 of the accord.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQABTBQTVsLgHxhilpuHQJhuV2VT
Structured Finance
CDO Spotlight: Benchmark Sensitivity Analysis Provides Insight On CDO Portfolio Risk
While early synthetic collateralized debt obligations (CDOs) typically referenced a static portfolio of obligors, these types of transaction now increasingly benefit from some degree of portfolio management. Trading reference obligors--the underlying assets--in and out of a portfolio can be aimed at maintaining or improving the portfolio's credit characteristics, and hence the CDO's rating. However, the overall effect of any given trade on portfolio credit quality may not always be intuitive at first sight, complicating managers' decisions.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQABTBQTVsLgHxhilpuHQJhuV2VU
CDO Spotlight: Benchmark Sensitivity Analysis Provides Insight On CDO Portfolio Risk
While early synthetic collateralized debt obligations (CDOs) typically referenced a static portfolio of obligors, these types of transaction now increasingly benefit from some degree of portfolio management. Trading reference obligors--the underlying assets--in and out of a portfolio can be aimed at maintaining or improving the portfolio's credit characteristics, and hence the CDO's rating. However, the overall effect of any given trade on portfolio credit quality may not always be intuitive at first sight, complicating managers' decisions.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQABTBQTVsLgHxhilpuHQJhuV2VU
Forecast: No housing recovery until 2009
Boston Globe - United States
... Mac may have trouble reselling them on the secondary mortgage market. And subprime loans, which fueled the real estate boom earlier in the decade, ...
Boston Globe - United States
... Mac may have trouble reselling them on the secondary mortgage market. And subprime loans, which fueled the real estate boom earlier in the decade, ...
ICICI will take $260 million hit
NDTV.com - New Delhi,India
ICICI's $2.2 billion exposure to the CDO market is the highest among the Indian banks. And while the bank's balance sheet is strong enough to take the ...
NDTV.com - New Delhi,India
ICICI's $2.2 billion exposure to the CDO market is the highest among the Indian banks. And while the bank's balance sheet is strong enough to take the ...
CIO of North Dakota State Investment Board on 130/30
Seeking Alpha - New York,NY,USA
This led us to our first use of portable alpha, quantitative investment models and ultimately to 130/30. Following years of successful use of quantitative ...
Seeking Alpha - New York,NY,USA
This led us to our first use of portable alpha, quantitative investment models and ultimately to 130/30. Following years of successful use of quantitative ...
Wealthiest Europeans look to hedge funds, commodities
Source: Guardian.co.uk
Europe's wealthiest families are planning to shift their investments further away from traditional assets into alternatives such as hedge funds and commodities, a report showed on Tuesday. More... <http://www.hedgefund-index.com/newstoday.asp>
Source: Guardian.co.uk
Europe's wealthiest families are planning to shift their investments further away from traditional assets into alternatives such as hedge funds and commodities, a report showed on Tuesday. More... <http://www.hedgefund-index.com/newstoday.asp>
Hedge fund managers say institutional investor base is growing
HedgeWeek - London,UK
Some 55 per cent of hedge fund managers report that their institutional investor client base has increased over the past three years, according to a new ...
HedgeWeek - London,UK
Some 55 per cent of hedge fund managers report that their institutional investor client base has increased over the past three years, according to a new ...
WALL STREET DAILY By RANDALL W. FORSYTH
Stagflation? Don't Get Fooled Again. Commodities aside, falling home prices are helping to push up CPI. Some inflation.
http://online.barrons.com/article/SB120458242354608699.html?mod=djemBF
Stagflation? Don't Get Fooled Again. Commodities aside, falling home prices are helping to push up CPI. Some inflation.
http://online.barrons.com/article/SB120458242354608699.html?mod=djemBF
GETTING TECHNICAL By MICHAEL KAHN
How High Commodities? Driven by global demand and a bit of speculation, raw materials have been a hot place to invest. But some are at very risky levels.
http://online.barrons.com/article/SB120454582831207457.html?mod=djemBF
How High Commodities? Driven by global demand and a bit of speculation, raw materials have been a hot place to invest. But some are at very risky levels.
http://online.barrons.com/article/SB120454582831207457.html?mod=djemBF
HOW COMPANIES THINK ABOUT CLIMATE CHANGE: A MCKINSEY GLOBAL SURVEY
Executives see climate change as both a risk and an opportunity--but they
haven't been quick to act. Our recent survey in a range of industries
around the world finds that climate change receives more emphasis
than the other global issues on executives' radar screens, and most of
our panelists--80 percent of them--think that some form of regulation to
control it will affect their businesses in the years ahead. Yet a
majority of them believe that these changes could actually raise
profits.
http://e.mckinseyquarterly.com/W0RT01DED53AE32CE4E19358BAFC60
Executives see climate change as both a risk and an opportunity--but they
haven't been quick to act. Our recent survey in a range of industries
around the world finds that climate change receives more emphasis
than the other global issues on executives' radar screens, and most of
our panelists--80 percent of them--think that some form of regulation to
control it will affect their businesses in the years ahead. Yet a
majority of them believe that these changes could actually raise
profits.
http://e.mckinseyquarterly.com/W0RT01DED53AE32CE4E19358BAFC60
Economic Studies | LONG-TERM TRENDS IN THE GLOBAL CAPITAL MARKETS
Several current trends will continue to influence the world's financial
markets long after the present bout of turbulence has ended.
http://e.mckinseyquarterly.com/W0RT01DED59A932CE4E19358BAFC60
Several current trends will continue to influence the world's financial
markets long after the present bout of turbulence has ended.
http://e.mckinseyquarterly.com/W0RT01DED59A932CE4E19358BAFC60
Corporate Finance | CONTROLLING COSTS IN EUROPEAN ASSET MANAGEMENT
Profits have been strong, but the recent market setback poses a serious
threat to profitability. (Premium)
http://e.mckinseyquarterly.com/W0RT01DED56AB32CE4E19358BAFC60
Profits have been strong, but the recent market setback poses a serious
threat to profitability. (Premium)
http://e.mckinseyquarterly.com/W0RT01DED56AB32CE4E19358BAFC60
Strategy | THE STATE OF CORPORATE PHILANTHROPY: A MCKINSEY GLOBAL SURVEY
The consumer's growing insistence that companies help solve social
problems is making corporate philanthropy more important than ever. But
many respondents to this survey say that their companies aren't meeting
these expectations or social goals effectively.
http://e.mckinseyquarterly.com/W0RT01DED50A832CE4E19358BAFC60
The consumer's growing insistence that companies help solve social
problems is making corporate philanthropy more important than ever. But
many respondents to this survey say that their companies aren't meeting
these expectations or social goals effectively.
http://e.mckinseyquarterly.com/W0RT01DED50A832CE4E19358BAFC60
Study: Big hedge funds get bigger
FT Alphaville - London,UK
The top 350 hedge funds control almost half the $2100bn industry, a new study shows. The study, to be issued Tuesday by Pertrac Financial, ...
FT Alphaville - London,UK
The top 350 hedge funds control almost half the $2100bn industry, a new study shows. The study, to be issued Tuesday by Pertrac Financial, ...
Nomura Chief to Step Down in Wake of US Subprime Losses
Financial Times - Tuesday March 04, 09:49 GMT
Financial Times - Tuesday March 04, 09:49 GMT
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Yield Curve Corner
TREASURIES-Barely moved in Asia before Bernanke speech
Reuters - USA
... awaited a speech by Federal Reserve Chairman Ben Bernanke later in the day for clues into how aggressively the central bank will cut interest rates. ...
Reuters - USA
... awaited a speech by Federal Reserve Chairman Ben Bernanke later in the day for clues into how aggressively the central bank will cut interest rates. ...
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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/VSHanatahan064_MO.jpg
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Iranian Situation and Other Man Made Disasters
Iran may be biggest threat to Iraq: U.S. general
Reuters via Yahoo! News Tue, 04 Mar 2008 11:37 AM PST
Iran may pose the greatest long-term threat to Iraq's stability, a U.S. general said on Tuesday, the day after Iran's president wrapped up a visit to Baghdad.
Reuters via Yahoo! News Tue, 04 Mar 2008 11:37 AM PST
Iran may pose the greatest long-term threat to Iraq's stability, a U.S. general said on Tuesday, the day after Iran's president wrapped up a visit to Baghdad.
Russia urges Iran to comply on nuclear program
Reuters via Yahoo! News Tue, 04 Mar 2008 11:32 AM PST
Russia urged Iran on Tuesday to comply with demands by the United Nations Security Council to curb its nuclear program, but Tehran was defiant.
Reuters via Yahoo! News Tue, 04 Mar 2008 11:32 AM PST
Russia urged Iran on Tuesday to comply with demands by the United Nations Security Council to curb its nuclear program, but Tehran was defiant.
No answers from Iran on US man's fate
AP via Yahoo! News Tue, 04 Mar 2008 11:01 AM PST
The wife of a missing former FBI agent said Tuesday she hired a lawyer in Iran to try to persuade authorities there to investigate her husband's disappearance almost a year ago.
AP via Yahoo! News Tue, 04 Mar 2008 11:01 AM PST
The wife of a missing former FBI agent said Tuesday she hired a lawyer in Iran to try to persuade authorities there to investigate her husband's disappearance almost a year ago.
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Opalesque’s Corner
- Opalesque Exclusive: Barton Biggs predicts rise of inflation to 6 or 7%, hedge fund returns in line with US big cap
- Fund launches: SocGen`s Lyxor to launch UCITS-hedge funds range, Sprott Asset Management launches global market neutral fund for Canadian investors, (Another) Canadian manager to run a kinder, gentler activist hedge-fund
- M&A: Update: Hedge fund manager Millennium announces acquisition of Castlegrove Capital
- Assets: JPMorgan raises cash for Blue River muni fund, Aramid Entertainment fund seeks another $200m
- Performance: Opalesque Exclusives: Altin:Fund returns 11.71% (est.) in February, 16.82% YTD, Krom River's fund returns 14.6% net (est.) in February, firm hires new COO, IMFC Global Investment Program up 18.88% on the back of rising commodity prices
- Indices: HFRX indices: Macro funds excel as market remains volatile, DMX AI-Index +13.37% MTD in February 2008, Industrial metals best sector at +3.95%
- 130/30: 130/30 funds are the new frontier investment, Industry experts` roundtable on 130/30 funds, Principal Global Investors aims to boost assets with new 130/30 fund
- Pertrac Study: Top 350 hedge funds control almost half industry
- Reports: Preqin hedge fund manager survey: 55% of hedge fund managers report increasing institutional investor client bases over past three years, Integrity Research: Expert network firms proliferate as investors increase in-house research
- Interviews: Prof. Joseph Mason: No true sale with prime brokers, hedge funds, Schroders warns of tough times ahead for fund managers, reports 35% rise in annual profit, Augustus AM: `We expect a good deal of new issuance in the convertible bond market`
- Credit Crunch Update: MBIA`s Brown says plan will let insurer raise capital, Investor Marty Whitman holds firm on MBIA, Ambac bets, Buffett says U.S. in recession, no longer wants to guarantee municipal bonds, Buffett watch (video), Asian operations boost HSBC results, HSBC`s view on U.S. is not rosy, Credit crunch leads to plunge in derivatives trading, Asset-backed, commercial-mortgage spreads met `financial Ebola`, Comment: The second leg of the credit crunch looks to be even uglier, The asset write down and credit loss league table
- Institutions: CalPERS adds $300m for emerging manager program - $150m each for Leading Edge, Quotient, Iceland`s Eur300m Engineers` Pension Fund to increase exposure to alternatives
- Legal: Update: Bayou Group sues investors, Citigroup, Wachovia face lawsuits from VCG involving credit derivatives, Updated story: Goldstein says he plans to sue SEC on ads, JPMorgan, Bear Stearns, Ex-UBS bankers targeted in municipal bonds criminal investigation
- People: Veteran strategist Robin Griffiths joins Cazenove Capital to prepare new hedge fund, Morgan Stanley promotes two to be co-CEOs at FrontPoint, Alasdair Findlay-Shirras appointed partner at First Avenue, ETrade names Donald Layton as new CEO
- Europe: Credit storm rolls across Icelandic landscape, island fights against credit default swaps` global market
- Middle-East: Middle East hedge fund market attracts more global investors, AMG opens London office to extend capabilities for Middle East clients
- Asia: Legg Mason plans to expand to China, View: Closer ties with China key to Hong Kong funds industry growth, Asian hedge funds didn`t do so badly in January, Comment: China SWF defends alternative investment acquisitions
- Australasia: UBS: `Global hedge funds will provide companies with a lot of liquidity in the next 12 months, particularly in Australia`
- Events: MFA to present series of seminars on sound practices for HF managers in cities across the U.S.
- Activist News: TCI role at Deutsche Boerse makes life tough for activists in Germany, Japan`s trade minister defends review of TCI bid for stake in J-Power, Knight Vinke approves of HSBC` board changes, but not of troubled US subsidiary, QVT, Genesco`s largest shareholder, opposes settlement
- News Briefs: Hedge fund services firm forecasts were 100% accurate in February 2008, Fears of 10,000 London City job losses, Credit Suisse` 2008 study of the Swiss real estate market shows market is in good shape, `Basel II: Market Developments and Financial Institution Resiliency` - speech available, Opec likely to stand firm as oil hits record, Nomura chief to step down in wake of US subprime losses
- . And Finally: Pssst! Want to buy a fake Ferrari (made in Sicily)?
- Logon: http://www.opalesque.com/main.php?act=archive
- Fund launches: SocGen`s Lyxor to launch UCITS-hedge funds range, Sprott Asset Management launches global market neutral fund for Canadian investors, (Another) Canadian manager to run a kinder, gentler activist hedge-fund
- M&A: Update: Hedge fund manager Millennium announces acquisition of Castlegrove Capital
- Assets: JPMorgan raises cash for Blue River muni fund, Aramid Entertainment fund seeks another $200m
- Performance: Opalesque Exclusives: Altin:Fund returns 11.71% (est.) in February, 16.82% YTD, Krom River's fund returns 14.6% net (est.) in February, firm hires new COO, IMFC Global Investment Program up 18.88% on the back of rising commodity prices
- Indices: HFRX indices: Macro funds excel as market remains volatile, DMX AI-Index +13.37% MTD in February 2008, Industrial metals best sector at +3.95%
- 130/30: 130/30 funds are the new frontier investment, Industry experts` roundtable on 130/30 funds, Principal Global Investors aims to boost assets with new 130/30 fund
- Pertrac Study: Top 350 hedge funds control almost half industry
- Reports: Preqin hedge fund manager survey: 55% of hedge fund managers report increasing institutional investor client bases over past three years, Integrity Research: Expert network firms proliferate as investors increase in-house research
- Interviews: Prof. Joseph Mason: No true sale with prime brokers, hedge funds, Schroders warns of tough times ahead for fund managers, reports 35% rise in annual profit, Augustus AM: `We expect a good deal of new issuance in the convertible bond market`
- Credit Crunch Update: MBIA`s Brown says plan will let insurer raise capital, Investor Marty Whitman holds firm on MBIA, Ambac bets, Buffett says U.S. in recession, no longer wants to guarantee municipal bonds, Buffett watch (video), Asian operations boost HSBC results, HSBC`s view on U.S. is not rosy, Credit crunch leads to plunge in derivatives trading, Asset-backed, commercial-mortgage spreads met `financial Ebola`, Comment: The second leg of the credit crunch looks to be even uglier, The asset write down and credit loss league table
- Institutions: CalPERS adds $300m for emerging manager program - $150m each for Leading Edge, Quotient, Iceland`s Eur300m Engineers` Pension Fund to increase exposure to alternatives
- Legal: Update: Bayou Group sues investors, Citigroup, Wachovia face lawsuits from VCG involving credit derivatives, Updated story: Goldstein says he plans to sue SEC on ads, JPMorgan, Bear Stearns, Ex-UBS bankers targeted in municipal bonds criminal investigation
- People: Veteran strategist Robin Griffiths joins Cazenove Capital to prepare new hedge fund, Morgan Stanley promotes two to be co-CEOs at FrontPoint, Alasdair Findlay-Shirras appointed partner at First Avenue, ETrade names Donald Layton as new CEO
- Europe: Credit storm rolls across Icelandic landscape, island fights against credit default swaps` global market
- Middle-East: Middle East hedge fund market attracts more global investors, AMG opens London office to extend capabilities for Middle East clients
- Asia: Legg Mason plans to expand to China, View: Closer ties with China key to Hong Kong funds industry growth, Asian hedge funds didn`t do so badly in January, Comment: China SWF defends alternative investment acquisitions
- Australasia: UBS: `Global hedge funds will provide companies with a lot of liquidity in the next 12 months, particularly in Australia`
- Events: MFA to present series of seminars on sound practices for HF managers in cities across the U.S.
- Activist News: TCI role at Deutsche Boerse makes life tough for activists in Germany, Japan`s trade minister defends review of TCI bid for stake in J-Power, Knight Vinke approves of HSBC` board changes, but not of troubled US subsidiary, QVT, Genesco`s largest shareholder, opposes settlement
- News Briefs: Hedge fund services firm forecasts were 100% accurate in February 2008, Fears of 10,000 London City job losses, Credit Suisse` 2008 study of the Swiss real estate market shows market is in good shape, `Basel II: Market Developments and Financial Institution Resiliency` - speech available, Opec likely to stand firm as oil hits record, Nomura chief to step down in wake of US subprime losses
- . And Finally: Pssst! Want to buy a fake Ferrari (made in Sicily)?
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
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Funnies, Facts, Quotes, etc….
Jack Nicholson uses movie clips to boost Clinton
March 03, 2008 04:47 PM ET
WASHINGTON (Reuters) - Movie star Jack Nicholson has assembled
some of his more famous film roles in an Internet video endorsing
U.S. Democratic presidential candidate Hillary Clinton that
has been viewed more than 1 million times.
http://links.reuters.com/r/5Y3GW/MTYVW/BGVWL/85GBH/JO5JW/YT/t
March 03, 2008 04:47 PM ET
WASHINGTON (Reuters) - Movie star Jack Nicholson has assembled
some of his more famous film roles in an Internet video endorsing
U.S. Democratic presidential candidate Hillary Clinton that
has been viewed more than 1 million times.
http://links.reuters.com/r/5Y3GW/MTYVW/BGVWL/85GBH/JO5JW/YT/t
probity PRO-buh-tee, noun:
Complete and confirmed integrity; uprightness.
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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)
_________________________________________________________________________
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
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