Main News

 

After the Bear Stearns meltdown, the politics of targeting taxpayer money at beleaguered homeowners has shifted. It's hard to fashion a sound bite that deflects the inevitable question: Why a "bailout" for Wall Street, and none for homeowners?
http://online.wsj.com/articles/capital?mod=djemtct

 

A Big Swiss Miss
Hopes that the world's banking giants are finally pulling through the credit storm have been dashed by Credit Suisse's warning that it may report a loss for the first quarter. Read More

 

Sherr's `One William Street' Leads $10 Billion Hedge Fund Rush
Bloomberg - USA
By Katherine Burton March 20 (Bloomberg) -- David Sherr, a former Lehman Brothers Holdings Inc. executive, is opening a New York-based hedge fund to trade ...

 

Hunt for £100m Rogue Trader after Attack on HBOS Share Price
The Telegraph - Thursday March 20, 10:30 GMT

 

The hedge fund manager looked at the sea of red on his screen, almost afraid to read beyond the headlines. Could he really take another day of catastrophic market news? Another day, another disaster! When the phone rang, he cringed and thought to himself, "Please don't let this be an investor—the last thing I want to do during this crisis is talk to another panicked client!" Does this feel familiar? Do you have what it takes to face your clients in a market meltdown? With headlines in the financial pages and media blaring out bad news constantly, many investors are in a state of panic. ......

 

Bear Stearns, the Conspiracy…
FT Alphaville - Thursday March 20, 09:54 GMT

 

LONDON (HedgeWorld.com)—Polar Capital Holdings plc, a listed British fund manager, is to close two hedge funds and one long-only fund amid an 11% fall in assets under management, the firm said Wednesday [March 19] in a trading statement. ......

Wednesday , 19 Mar 2008
Among others, the Bank Credit Analyst looks to take profits on long/overweight positions in the coming weeks.

 

"Extraordinary error" brought down Northern Rock
When the subprime market began its meltdown, the world collapsed for Northern Rock, a bank dating back to the mid-19th century. Simon Maughan, an MF Global Securities analyst, says the bank's fatal mistake was that it didn't anticipate or adequately hedge against a significant increase in the cost of borrowing in credit markets. Bloomberg (20 Mar.)

 

York: A Long, Ugly, Deep Recession
Jerry York's advice to CFOs: "Watch your receivables like a hawk."

 

Crunch Numbers (The Economist)
A troubling estimate of the costs of the credit crisis so far.

 

 

 

Criteria: The Use Of Rating-Based Haircuts In Event Of Default Overcollateralization Tests For CDOs
Events of default (EODs) among U.S. collateralized debt obligations of asset-backed securities (CDOs of ABS) have been increasing recently. EODs have been rare historically, but mortgage market troubles have led to widespread downgrades of U.S. RMBS and, in turn, downgrades on certain CDOs that contain these securities. In light of the rise in EODs, we are taking a closer look at the effect of rating-based adjustments, or "haircuts," to the value of the underlying securities of CDOs when calculating certain EOD test ratios.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQABASQTVsLgHxhilpuHQJhuV2VY

 

Request For Comment: Rating-Based Adjustments To CDO Overcollateralization Tests In The "Regular" Payment Priority
We are requesting comments from market participants regarding the use of rating- and non-default-based adjustments, or "haircuts," to calculate overcollateralization ratio tests in collateralized debt obligation (CDO) transactions. Rating-based haircuts for CDO transactions are used to value assets at less-than-par value should certain rating concentrations within their collateral pools exceed preset amounts.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQABASQTVsLgHxhilpuHQJhuV2VA

 

COPING WITH THE CREDIT CRUNCH: OPPORTUNITIES FOR CORPORATE BANKING IN
EUROPE
Although the outlook for corporate banking is less bright than it has
been in recent years, appropriate strategies can still deliver solid
growth in the short to medium term. [Audio included]
http://e.mckinseyquarterly.com/W0RT01CE2097732CE4E19357CFFD40

 

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Yield Curve Corner

 

Bernanke's Own Home on Capitol Hill Shows Housing Boom and Bust
Bloomberg - USA
By Brendan Murray March 20 (Bloomberg) -- The US housing recession has arrived literally on the doorstep of Federal Reserve Chairman Ben S. Bernanke. ...

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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/FSHShawaii080_G11.jpg

Hurricane flood threat coming soon to Google
March 19, 2008 05:59 PM ET
MIAMI (Reuters) - Americans in the hurricane danger zone may
soon be able to use Google to find out if their own home is
threatened by a dangerous storm surge, the director of the National
Hurricane Center said on Wednesday.
http://links.reuters.com/r/QO4QB/XZHJO/RK9U5/Q1R0G/VKVER/YT/t

 

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Iranian Situation and Other Man Made Disasters

 

U.S. banks warned on Iran's 'deceptive practices'
USA Today Thu, 20 Mar 2008 9:58 AM PDT
The Bush administration issued a fresh warning Thursday to U.S. banks that Iran is using "an array of deceptive practices" to hide its alleged involvement in nuclear proliferation and terrorist activities.

 

Cheney: Iran may have resumed nuclear program
USA Today Wed, 19 Mar 2008 1:21 PM PDT
Retaining his tough stance against Iran, U.S. Vice President Dick Cheney said Wednesday that Tehran may have restarted the nuclear weaponization program that a U.S. intelligence report said was halted in 2003.

 

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Opalesque’s Corner

 

- Fund launches: SAC veteran Grodin to launch L/S technology, energy hedge fund, Martin Currie to launch FoHF in April, Former Ivy CIO Geiger launches FOHF vehicle, SIM launches South Africa`s first institutional 130/30 fund
- Liquidations: Cornerstone shuts up shop and liquidates due to poor performance, Treflie closes down long/short vehicle, will focus in emerging markets, Polar Capital closes two hedge funds as AUM falls by 11%
- Performance: Endeavour Capital falls about 28% due to Japanese bonds` volatility, Meriwether`s bond fund loses 24%, New Stars` returns positive but AUM down, Blackstone positive, HFoFs business returns 13%, Equities fare better than debt in hedge fund strife, The hedge funds that made millions out of Bear Stearns
- Indices: Scotia Capital Canadian Hedge Fund Index finished February 2008 +8.56%
- Water investing special: Opalesque Exclusive: Credit Agricole AM launches water fund, Investors warm to water as shortages mount
- Trends: HFR: Pace of both hedge fund launches and liquidations continued to slow in Q4, number of new funds lowest since 2001, Merrill Lynch survey: Fund managers take refuge in cash, Aite Group says quants here to stay in special report `The world according to quants`
- Risk Management: Threadneedle - Hedge Fund risk management more important than ever
- Capital Z Asset Management invests in Boston hedge fund LightKeeper Investments, latest addition to sponsorship portfolio
- Client Relations: Coach lays out the 5 Ps of crisis communications
- Views: Jim Rogers: `Big rally` for stocks to continue, Fed `out of control`, Jim Rogers invests in Taiwan on improving China ties, SGAM`s head of research: Regulatory crackdown on securitisation would be a mistake, The Great Unwind has started, avoid leverage, Citigroup says
- Bear Stearns Update: NYC to check if Bear Stearns deceived investors, What to do with Bear Stearns` CEO?, Bear Stearns prepares to lawyer up, Joseph Lewis plans action to protect 8.4 pct Bear Stearns stake, Investors bet on rival Bear bids, Bear Stearns brokers get $2m offers to move
- Credit Crunch Update: Mortgage lenders to pump $200bln into markets, Mortgage bond prices offer `hedge fund-like returns`, UBS says, UBS may face $3.47bln of write-downs, CreditSights says, Morgan Stanley asset management loses $160m, Credit Suisse faces first-quarter loss, Dresdner Bank bails out SIV with $1.5bln, Former Fed chairman Volcker says financial crisis not over, Comment: Act now to stop the markets` vicious circle
- Environmental Trading News: Pollution is good business:  Is now the time to buy carbon contracts?
- Commodities: An Interview with Philip Klapwijk on metals markets, Goldman expands commodity trading 46% in Q1, Canadian dollar plummets as prices of export commodities drop, Hedge fund money flows out of commodities amid dollar and economy worries, Is the commodity bubble bursting?
- Exchanges: Nasdaq OMX unveils European trading system, Nyfix launches dark liquidity pool, Eurex plans to increase stake in European Energy Exchange
- Institutions: Massachusetts PRIM seeks portable alpha managers
- Regulators: FSA to launch probe as rumours hit UK banks
- Legal: Northern Rock shareholders prepare legal challenge, Ritchie dismisses Coventry case, plans to re-file
- Custodians / Administrators: JPMorgan considers wider custody services on alternatives, Fortis fund administrator plans to automate reconciliation process
- People: Duff Capital continues to build management team, GAM hires two from Condor, Ellington lays off leveraged finance pros
- Europe: Most UK based hedge fund managers unaware of valuation guides, SocGen Update: Societe Generale will retain independence for now, BoE, ECB unlock funds ahead of Easter break
- Middle East: BNP Paribas, Saudi bank create asset management joint venture
- Asia: Hedge fund population may shrink in Asia due to declining returns, Chinese insurer to buy half of Fortis AM
- Australia: Australian hedge funds reject market manipulation accusations, support greater disclosure
- Emerging Markets: Morgan Stanley`s MD believes emerging markets are decoupling from the US
- Sovereign Wealth Funds: IMF Board expected to approve best practices guide for sovereign wealth funds
- Activist News: Media General urges investors to deny Harbinger slate, Hedge fund aims at Dillard`s board seats, Fidelity funds shareholders reject genocide-linked proposal
- News Briefs: Art funds expand in Middle East, Asia as hedge against slowdown, European Financial Management Association and EDHEC present `European Financial Management 2008 Symposium`
- And Finally. Singapore students get lectures on love, flirting and relationships
- 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….

 

acerbic uh-SUR-bik, adjective:

Sharp, biting, or acid in temper, expression, or tone.

 

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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)

HFRX Indices https://www.hedgefundresearch.com/hfrx_reg/index.php?fuse=login&1170880431

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Regulatory Info

 

 

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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.