Archive: 03/17/2008

Main News

Bear Sells for $2 a Share; Fed Cuts Discount Rate

FT.com - Top 10 investors in Bear Stearns
Top 10 investors in Bear Stearns. Fri Mar 14 11:25:20 EDT 2008. 1. Barron Hanley Mewhinny. 2. Lewis Joseph. 3. Morgan Stanley ...

us.ft.com/ftgateway/superpage.ft?news_id=fto031420081137443866 - 25k - Cached - Similar pages

Fed Acts on Wall St. Domino Theory
New York Times - United States
The volume of financial contracts that are not traded on any major exchanges has ballooned in recent years after the bailout of a big hedge fund, ...

See all stories on this topic

Duration Capital hedge fund cuts ties with JPMorgan
Reuters - USA
NEW YORK, March 13 (Reuters) - Duration Capital, one of several hedge funds forced to sell hundreds of millions of dollars of municipal bonds when their ...

See all stories on this topic

Investors Caught as Ellington Battles Mortgage Woes
NEW YORK (HedgeWorld.com)—Last September Ellington Management Group LLC Chief Michael Vranos informed his clients that the firm had decided to temporarily suspend redemptions from two funds because there was no way to value the assets fairly. ......

90 Ratings Lowered On 16 U.S. CDO Of ABS Transactions; $17.756 Billion In Issuance Affected
We lowered our ratings on 90 tranches from 16 U.S. cash flow and hybrid collateralized debt obligation (CDO) transactions. We removed 67 of the lowered ratings from CreditWatch with negative implications. In addition, we affirmed our ratings on three tranches. The ratings on 14 tranches from four of the downgraded transactions remain on CreditWatch negative, indicating a significant likelihood of further downgrades. The downgraded tranches have a total issuance amount of $17.756 billion.

To learn more, click or copy and paste the URL below:
https://www.ratingsdirect.com/Apps/RD/controller/Article?id=635730&SctArtId=12981&from=CM&nsl_code=CMT

Bernanke Discards Monetary History With Bear Stearns Bailout
Bloomberg - USA
By Craig Torres March 15 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke is being forced to throw out four decades of monetary history by a ...

See all stories on this topic

Hedge funds fleeing Bear's prime broker business
Reuters - USA
By Dane Hamilton NEW YORK (Reuters) - Even the backing of the New York Federal Reserve and JPMorgan Chase can't keep hedge funds from fleeing Bear Stearns' ...

See all stories on this topic

Leverage Wipes Out Carlyle Capital: Implications are Ominous
by Michael Shedlock

Liquidity Risk and Correlation Risk: Implications for Risk Management Authors Acharya, Viral; Schaefer, Stephen M.; Date September 2006 Category Liquidity

Click above to see all GloriaMundi resources from these categories Abstract Market liquidity risk, funding liquidity risk, and correlation risk are all inter-twined and related in a non-linear fashion to the same underlying asset return uncertainty. These relationships between different dimensions of liquidity risk, and the seemingly unrelated correlation and asset return risks, have important implications for risk managers and the hedging strategies their institutions employ. We discuss different mechanisms to manage such risks. Links view complete description on GloriaMundi

Carlyle may help CCC investors: report
March 14, 2008 05:13 AM ET
PARIS (Reuters) - Private equity group Carlyle  will look at
ways to help investors who have lost money in Dutch-listed Carlyle
Capital Corporation (CCC) , Carlyle co-founder David Rubenstein
was quoted on Friday as saying.
http://links.reuters.com/r/YMQP2/2W66U/O4INZ/MFYZR/UXHFY/YT/t

Carlyle founders seek to learn from fund's collapse
Wednesday morning, the founders of The Carlyle Group thought they'd won a reprieve for their troubled affiliate, Carlyle Capital Corp. But a few hours later, it was apparent that the fund would collapse, losing $900 million for its investors. Now, the private equity giants say they are looking to the future and working on restoring trust in their firm. The Washington Post (14 Mar.)

Global macro strategies come back into fashion
Citadel Investment Group's appointment last week of macro specialist Kaveh Alamouti from Moore Capital Management represents another vote of confidence in global macro hedge fund investment styles in a challenging environment.

http://mail2.efnmail.co.uk/r/347974/MTk4MTI1OjE2NzE0/

Opportunities to be found in volatility
A bear market need not necessarily be bad news. While stock prices have fallen dramatically and the market appears to be unsure what is coming next, equity derivatives desks are devising ways for investors to profit from "hidden" or "implied" assets such as volatility and correlation, both of which have risen sharply.

http://mail2.efnmail.co.uk/r/347977/MTk4MTI1OjE2NzE0/

$4B in Sweet CDOs: Northstar Realty is Ready to Shine
Seeking Alpha - New York,NY,USA
The N Star managed CDOs are absolutely beautiful things to behold from a credit perspective: the aggregate upgrade/downgrade ratio is a stunning 25:1 In ...

ELIOT'S GAL A SHARED ASSET
New York Post Sun, 16 Mar 2008 2:10 AM PDT
The high-priced hooker who sunk 's political career was a party pal of one of his top financial backers, boozing it up with him at clubs and his palatial Hamptons mansion. James Chanos, 50, a billionaire hedge fund manager who runs Kynikos...

Market Risk - President's Working Group Issues Policy Statement to Improve Future State of Financial Markets
The President's Working Group on Financial Markets issued a policy statement yesterday with recommendations to improve the future state of U.S. and global financial markets. The statement offers the group's insight on causes of recent market issues and next steps for mitigating systemic risk, restoring investor confidence, and facilitating stable economic growth.

Full Story...

The SEC plans to tell companies that they can provide ranges for the values of securities that are hard to gauge. The risk is that this could allow companies to present overly rosy views of the losses they are facing.

http://online.wsj.com/article/SB120545073858135101.html?mod=djemheard
_________________________________________________________________________
Yield Curve Corner

Bernanke, Read This Book on Greenspan's Bubbles: James Pressley
Bloomberg - USA
March 14 (Bloomberg) -- Before Ben Bernanke shovels more cash into the US's money trap, he should read ``Greenspan's Bubbles,'' a damning account of how his ...

See all stories on this topic

Bush To Meet Monday With Bernanke, Paulson
CNNMoney.com - USA
... Ben Bernanke and Treasury Secretary Henry Paulson - after the Federal Reserve Friday had to step in to keep investment giant Bear Stearns (BSC) afloat. ...

See all stories on this topic
_________________________________________________________________________
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/DSTmiddleeast074_N7.jpg
_________________________________________________________________________
Iranian Situation and Other Man Made Disasters
http://www.globalincidentmap.com/home.php
http://icasualties.org/oif/

Iran conservatives retain grip on parliament
AFP via Yahoo! News Sun, 16 Mar 2008 12:12 PM PDT
Iran's conservatives on Sunday retained control of parliament with a comfortable majority in legislative elections, despite a respectable showing by reformists who suffered heavy pre-vote vetoes.

_________________________________________________________________________
Opalesque’s Corner
_________________________________________________________________________
Misc. Items of Interest

_____________________________________________________________________
Funnies, Facts, Quotes, etc….

bedizen ih-DY-zuhn, transitive verb:
To dress or adorn in gaudy manner.

_________________________________________________________________________
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.
 

This message was sent by: Investor Dna, 1383 6th avenue, Suite 1000, new york, NY 10019

Powered by iContact: http://freetrial.icontact.com

Forward to a friend:
http://app.icontact.com/icp/sub/forward?m=144395&s=105182&c=M2N7&cid=147550

Manage your subscription:
http://app.icontact.com/icp/mmail-mprofile.pl?r=105182&l=251&s=M2N7&m=144395&c=147550