Archive: 06/02/2008

Main News

 

Banks spell out position on 'fair value'
May 29 2008 18:55
A group of leading banks has clarified its stance regarding 'fair value' – or mark-to-market accounting – after its proposals to alter the rules caused a storm Read more »

 

Pimco's Auction-Rate Holders Fail to Get Satisfaction (Update1). By Christopher Condon. May 30 (Bloomberg) -- David Chandler is tired of waiting for Pacific ...
www.bloomberg.com/apps/news?pid=20601087&sid=a3Qh75M3UpDw&refer=home –

 

Gold producer hedging drops to record lows
Gold hedging plunged by another 18% in the first quarter of 2008, shrinking the global delta-adjusted hedge positions to 22 million troy ounces (Moz).

 

World oil markets are likely to remain under pressure for some time before high prices have a corrective impact on both supply and demand, IMF Chief Economist Simon Johnson said.

 

Transatlantic trading at risk
A fissure has opened up between the politicians and regulatory bodies seeking to rule over the transatlantic derivatives market.
http://mail2.efnmail.co.uk/r/367979/MTk4MTI1OjE3NDg0/

 

Profiting From Global ChangeAN INTERVIEW WITH MOHAMED EL-ERIAN: Pimco's co-chief executive discusses his latest book, which puts today's market traumas into context.
http://online.barrons.com/article/SB121218746872433999.html?mod=djemWR

 

By TERI BUHL

Angry investors in an embattled $650 million Greenwich hedge moved last week to take control of the fund from Philip and Alan Milton, the brother investment team that had steered the fund through many years of fat returns before it hit trouble in...full story

 

OECD warns on equity structured products
European banks must turn their attention to the risks posed by the $1 trillion (?642.9bn) in equity structured products they underwrite in the wake of their losses on structured credit, according to the Organisation for Economic Co-operation and Development.
http://mail2.efnmail.co.uk/r/367984/MTk4MTI1OjE3NDg0/

 

Moody's: Potential counterparty failure poses systemic risk A new report from Moody's Investors Service explains that the biggest systemic risk to the $62 trillion credit-derivatives market is not its size and complexity but the potential failure of a large securities firm or investment bank which is acting as a counterparty. A bank collapse could damage the operational integrity and pricing in the credit-default swap market.  ClipSyndicate/Bloomberg (29 May.) , Financial News Online (30 May.) , The Wall Street Journal (subscription required) (30 May.)

 

 Moody's Methodology Change Provokes Wave of CDO Downgrades
By: Martin de Sa'Pinto, Senior Financial Correspondent
Posted: 05/30/2008 2:55:19 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15018.html

 

Standard & Poor's is requesting comments on the proposed addition of an identifier to signify that a rating is on securities that have been issued out of a securitization structure. The subscript would appear after the traditional rating symbol. For example, the rating symbol for a 'AAA' rated asset-backed note would change to 'AAAs'. The purpose of the identifier is to provide greater transparency and insight to market participants by distinguishing structured finance ratings from the more traditional corporate and government ratings.

 

Structured Finance

We lowered our ratings on 132 tranches from 28 U.S. cash flow and hybrid collateralized debt obligation (CDO) transactions. In addition, the ratings on 69 of the downgraded tranches remain on CreditWatch with negative implications, indicating a significant likelihood of further downgrades. We also lowered and placed on CreditWatch negative our rating on one tranche from one U.S. synthetic CDO transaction.

 

Wanted: more daydreamers and fewer alpha males
Wilfred Bion was a month short of his 20th birthday when, in 1917, he undertook the action that led to him being awarded the Distinguished Service Order and the Légion d'Honneur, two of the highest awards for bravery in the UK and France.
http://mail2.efnmail.co.uk/r/367968/MTk4MTI1OjE3NDg0/

 

Baring warns investors to protect against late-cycle inflation
Baring Asset Management has warned that investors need to act decisively to protect their portfolios against the ravages of late-cycle inflation.
http://mail2.efnmail.co.uk/r/367971/MTk4MTI1OjE3NDg0/

 

Liquidity returns to dark pools
The proportion of US equity trades executed by one of the nation's 18 biggest dark pools surged last month, as lower volatility tempted traders back to non-displayed markets.
http://mail2.efnmail.co.uk/r/367974/MTk4MTI1OjE3NDg0/

 

Hedge funds need luck, not tools
Almost a quarter of hedge funds were shown by the credit crisis to be trading on their luck, according to a risk management consultant.
http://mail2.efnmail.co.uk/r/367975/MTk4MTI1OjE3NDg0/

 

Water is the next crisis in waiting
The sages say that if you ride the big trends, the cycles will look after themselves. It was always good advice, but the problem is spotting the big trends.
http://mail2.efnmail.co.uk/r/367990/MTk4MTI1OjE3NDg0/

 

A Money Manager's Ultimate Fight GameHow a Brazilian martial-arts champion got roughed up in the self-dealing of high-profile European hedge-fund manager Florian Homm.
http://online.barrons.com/article/SB121219578354834593.html?mod=djemWR

Risk Management Announce New Service for Hedge Fund Managers
PR-CANADA.net (press release) - Murino,Montenegro
Risk Management Solutions (RMS) announced today they are offering a (10) ten year background investigation to all Hedge Fund Managers to assist them in ...

 

Matthew Vincent: Find your inner hedge fund manager
Financial Times Fri, 30 May 2008 12:26 PM PDT
Ialmost feel sorry for hedge fund managers. Not only are they finding it hard to produce positive returns in today’s markets, some also seem to have fallen on hard times.

 

 

 

 

 

 

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Yield Curve Corner

 

Fed's Fireman On Wall Street Feels Some Heat
Wall Street Journal - USA
Fed Chairman Ben Bernanke has set the Fed's overall strategy during the current crisis, and Mr. Geithner has been instrumental in executing it. ...

 

Bernanke Addresses Future Of Liquidity Planning
RTT News - Williamsville,NY,USA
(RTTNews) - Changes to liquidity planning in light of the credit crunch were the focus of remarks from Federal Reserve Chairman Ben Bernanke Thursday. ...

 

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Natural Disaster Corner

 

World Meterological Organization http://severe.worldweather.org/

 

Counting the economic costs of China's earthquake
Xinhua - China
China is strengthening its financial capacity. From 2003 to 2007, the state coffers accumulated 17 trillion yuan (2.5 trillion US dollars). ...
See all stories on this topic

 

Climate Bill Underlines Obstacles to Capping Greenhouse Gases
(By Juliet Eilperin and Steven Mufson, The Washington Post)

 

Myanmar starts mass evictions from cyclone camps
May 30, 2008 03:13 AM ET
KYAUKTAN, Myanmar (Reuters) - Myanmar's junta started evicting
destitute families from government-run cyclone relief centers
on Friday, apparently out of concern the 'tented villages' might
become permanent.
http://links.reuters.com/r/8Q1OD/J1VF5/SDS14/W8FZ8/6UX26/YT/t

 

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Iranian Situation and Other Man Made Disasters

 

 

Iran not seeking to build nuclear weapons: Putin
AFP via Yahoo! News Sat, 31 May 2008 7:19 AM PDT
Iran is not trying to acquire nuclear weapons but Tehran should avoid "irritating" its neighbours, Russian Prime Minister Vladimir Putin said Saturday in an interview with French newspaper Le Monde.

 

Iran says its right to enrichment is non-negotiable
Reuters via Yahoo! News Sat, 31 May 2008 3:24 AM PDT
Iran will not give up its right to enrich uranium, a senior Iranian official said on Saturday, days before major powers submit an upgraded package of incentives to try to coax Tehran into halting the work.

 

Iran's foreign minister slams US foreign policy
AP via Yahoo! News Fri, 30 May 2008 4:43 PM PDT
Iran's foreign minister said Friday that the United States should conduct a "serious review" of its foreign policy after the presidential election — a signal that Iran is leaving open the possibility of improved relations with Washington.

 

UPI Fri, 30 May 2008 4:59 AM PDT
WASHINGTON, May 30 (UPI) -- Iran has doubled its ability to enrich uranium , two experts in the United States say, based on a report by the U.N. nuclear watchdog

 

AP via Yahoo! News Thu, 29 May 2008 5:57 PM PDT
The chief U.S. delegate to the International Atomic Energy Agency said evidence described by the nuclear watchdog Thursday increased concerns that Iran had tried to make nuclear weapons

 

Iran: Politics Affecting South Pars Energy Projects
May 29, 2008 2101 GMT
European energy firms are looking to postpone projects in Iran's South Pars natural gas field until the political landscape is more favorable.
http://www.stratfor.com/analysis/iran_politics_affecting_south_pars_energy_projects

 

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Opalesque’s Corner

 

- New Launches:  Jupiter to launch Strategic Bond fund, Harpswell Capital preps offshore fund focused on energy, utilities and basic materials, AXA Rosenberg launches new Global Advantage long/short strategy
- Seeders: Triple A Partners to seed KS Asset Management which will launch Korea fund in September
- Trends: Opalesque Exclusive: Swiss FoHFs expect stable and positive returns in Q2 2008 -  all FoHFs indices up in April but still down YTD
- Academics: Opalesque Exclusive:  Economics, information science, and the behavior of crowds, using science to predict market impacting events, Cutting Edge Academics: academic research in money management is growing by leaps and bounds
- Profile: The ascent of Man
- Lists: Which managers have the best ideas? Some of the top money managers` stock picks and pans, Profiles of 10 most influential European CDO managers
- People: Opalesque Exclusive:  Antoine Bory becomes CEO of Gutzwiller Fonds Management AG, Basel, Pramerica names George Passaris to lead alternatives product management in Europe,  Janus Capital appoints Jack Lin as new Asia head, RREEF Alternative Investments Hires Susan Barlow as Head of Global Client Relations, F&C Investments has hired Julian Lyne as head of global consultants, Lord Adair Turner confirmed as new FSA chairman, Patrick Raaflaub to be Director of new Swiss financial services regulator FINMA
- Regulatory:  SEC`s Cox calls for more risk management as task-force study surfaces, Hedging risk: Best practices for hedge fund directors, officers and service providers
- Banks spell out position on `fair value`, Funds welcome regulation says survey of 100 leading alternative investments industry professionals
- Comment:  Larger hedge funds may be riskier - Parker Global Strategies
- Comment: Administrator survey brings up several issues investors should consider when reviewing survey information
- Credit Crunch Update:  Are rising credit default swaps on US investment banks signaling second phase of the credit crunch?  Banks may be understating key lending rate: report, US banks likely to fail as bad loans soar, Banks may need to raise further $120bln, warns UBS, UBS` CEO Rohner declares `worst behind us`, RBC reports 27% drop for Q2 2008, CIBC loses $1.11 billion in quarter on massive credit-market hit
- IOSCO publishes recommendations to address subprime crisis, Credit crisis the solution, not the problem - Lombard
- Bear Stearns Update: Bear Stearns shareholders OK buyout by JPMorgan, Cayne speaks publicly for first time at shareholders meeting, apologizes as takeover of Bear is approved, Comment: Great moments in death throes
- Rating Agencies: Moody`s new implied ratings lab reveals Ambac, MBIA turning to junk
- 130/30: First 130/30 Exchange-Traded product debuts
- Exchanges: LSE's new Specialist Funds Market sees first listing with $110m Da Vinci Capital
- Environmental Trading: The Green Exchange announces TFS Energy as founding member, Montreal carbon trading may be hurt by environment alternatives
- Commodities:  ABN Amro launches new structured product, CFTC announces multiple energy market initiatives to increase market transparency, Tighter U.S. commodity trading laws may be boon to foreign exchanges, NYMEX to raise margins on crude, related futures, Peak oil worries (video), Government groups OECD and UN's FAO see agricultural commodity prices remaining high and growing more volatile
- Activist News:  Steel Partners may be first foreign fund to oust management at publicly traded Japanese company
- News Briefs: Hedge-fund manager Adam Sender's curator sees art prices falling , Robin Hood gala auction feels a chill from Wall Street's slump, Flat market halts Goldman-sponsored Spac IPO, Deutsche Bank, Santander may bid for Citigroup German consumer unit, Ex-UBS banker set to plead guilty, Former Ernst & Young partner and investment banker charged with insider trading in NYC, Wall Street worries come home to roost in Greenwich,
- And Finally. Spaniard can`t meet mortgage payments, so why not selling 64,000 `mortgage-linked` lottery tickets at 5 euros each?
- Logon: http://www.opalesque.com/index.php?act=archive

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Misc. Items of Interest

 

Dear John: My fiancée and I cannot afford to buy a house in any part of New York City and we have a combined annual income of $156,000. If a one-family fixer-upper house costs, on average, $600,000 to $650,000 with 20 percent down that would...full story

 

U.S. City of the Year: Chicago | by Alex Kotlowitz
Skyscrapers, green roofs, and house music -- a
very American metropolis.
http://trax.fastcompany.com/k/w/mailman/fasttake/20080530/fastcities_chicago

 

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Funnies, Facts, Quotes, etc….

 

harridan HAIR-uh-din, noun:

A worn-out strumpet; a vixenish woman; a hag.

 

grandee gran-DEE, noun:

1. A man of elevated rank or station.
2. In Spain or Portugal, a nobleman of the first rank.

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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.

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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.

 

 

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