Archive: 08/05/2008
Main News
Counting the cost of the credit crunch
It is difficult to imagine what $2.7 trillion looks like. It is roughly the same as the gross domestic product of the UK, the equivalent of the entire US economy shutting down for 10 weeks, or the total potential cost of the war in Iraq. It would buy you Citigroup 29 times over. If you paid it out to everyone on the planet, they would each receive $404. These dollar bills would stretch 259 million miles laid end-to-end.
http://mail2.efnmail.co.uk/r/385712/MTk4MTI1OjE4MTc0/
It is difficult to imagine what $2.7 trillion looks like. It is roughly the same as the gross domestic product of the UK, the equivalent of the entire US economy shutting down for 10 weeks, or the total potential cost of the war in Iraq. It would buy you Citigroup 29 times over. If you paid it out to everyone on the planet, they would each receive $404. These dollar bills would stretch 259 million miles laid end-to-end.
http://mail2.efnmail.co.uk/r/385712/MTk4MTI1OjE4MTc0/
Former Gartmore Chief to chair Hermes
Financial Times - Monday August 04, 10:13 BST
Financial Times - Monday August 04, 10:13 BST
A review of a year to forget
A year ago this summer a hedge fund run by the collapsed bank Bear Stearns that invested in high-risk mortgage-backed securities fell in value by 23%. It marked the start of what has been 12 months of turmoil in the financial markets, which has claimed the jobs of some of Wall Street's biggest names, brought its proudest banks to their knees after billion-dollar writedowns and made "sub-prime" the buzzword for an industry reeling from the effects of a global credit crunch.
http://mail2.efnmail.co.uk/r/385717/MTk4MTI1OjE4MTc0/
A year ago this summer a hedge fund run by the collapsed bank Bear Stearns that invested in high-risk mortgage-backed securities fell in value by 23%. It marked the start of what has been 12 months of turmoil in the financial markets, which has claimed the jobs of some of Wall Street's biggest names, brought its proudest banks to their knees after billion-dollar writedowns and made "sub-prime" the buzzword for an industry reeling from the effects of a global credit crunch.
http://mail2.efnmail.co.uk/r/385717/MTk4MTI1OjE4MTc0/
Horrible, or Just Grim?
The economy lost jobs for the seventh straight month, and the unemployment rate jumped to a four-year high. Is there a silver lining in here somewhere? Read More
The economy lost jobs for the seventh straight month, and the unemployment rate jumped to a four-year high. Is there a silver lining in here somewhere? Read More
cases against Bear
CNNMoney.com - USA
The two Bear Stearns hedge fund managers were charged with securities and wire fraud. The indictment alleges that starting in March 2007 Cioffi and Tannin ...
CNNMoney.com - USA
The two Bear Stearns hedge fund managers were charged with securities and wire fraud. The indictment alleges that starting in March 2007 Cioffi and Tannin ...
Hedge funds are snapping up delinquent mortgages Investment banks ...
San Francisco Chronicle - CA, USA
Alan Zibel, AP Dozens of hedge funds, private-equity groups and other investors have plunged into the beaten-down mortgage market in recent months, ...
San Francisco Chronicle - CA, USA
Alan Zibel, AP Dozens of hedge funds, private-equity groups and other investors have plunged into the beaten-down mortgage market in recent months, ...
Down economy spares no one, including the rich<http://www.cnn.com/2008/US/08/04/wealthy.spending.ap/index.html>
08/04/08 03:14 AM, EDT
The rich are sharing your financial pain -- and contributing to it.
FULL STORY<http://www.cnn.com/2008/US/08/04/wealthy.spending.ap/index.html>
08/04/08 03:14 AM, EDT
The rich are sharing your financial pain -- and contributing to it.
FULL STORY<http://www.cnn.com/2008/US/08/04/wealthy.spending.ap/index.html>
The Securities Industry and Financial Markets Association Credit Rating Agency Task Force last Friday issued its recommendations for credit rating agency reform. The recommendations are being shared with regulators, lawmakers, and credit rating agencies globally, and reflect the efforts of the senior-level investor-led industry group. The recommendations also respond directly to the designation by the US President’s Working Group on Financial Markets of the blue ribbon Task Force as the private-sector group providing the PWG with industry guidance on credit rating matters.
U.S. Credit Metrics Monthly: Defaults Continued To Rise Through July<http://now.eloqua.com/e/er.aspx?s=795&lid=6063&elq=7768511940104510BA0D8517F642BE87>
BNP Paribas, which signaled credit crunch, is now France's ...
BloggingStocks - USA
About a year ago, on August 9, 2007, BNP Paribas halted withdrawals from three funds that invested in subprime mortgage debt. The bank's announcement proved ...
BloggingStocks - USA
About a year ago, on August 9, 2007, BNP Paribas halted withdrawals from three funds that invested in subprime mortgage debt. The bank's announcement proved ...
Saturday , 02 Aug 2008
For the moment precious metals prices are sliding - in line with the weakr oil price, but this is more justifiable for some rather than others.
For the moment precious metals prices are sliding - in line with the weakr oil price, but this is more justifiable for some rather than others.
Morgan Creek Launches Dislocation FOF
By: Emma Trincal, Senior Financial Correspondent
Posted: 08/04/2008 3:20:45 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=dail&story=dail15178.html
By: Emma Trincal, Senior Financial Correspondent
Posted: 08/04/2008 3:20:45 PM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=dail&story=dail15178.html
London hedge fund manager CQS, which specialises in convertible bonds, fixed-income and credit instruments, whose ...
eFinancial News Mon, 04 Aug 2008 6:07 AM PDT
London hedge fund manager CQS, which specialises in convertible bonds, fixed-income and credit instruments, whose markets have been the hardest hit by the credit crunch, increased its income from fees by almost one-fifth last year.
eFinancial News Mon, 04 Aug 2008 6:07 AM PDT
London hedge fund manager CQS, which specialises in convertible bonds, fixed-income and credit instruments, whose markets have been the hardest hit by the credit crunch, increased its income from fees by almost one-fifth last year.
Citigroup Said to Shutter Remaining Tribeca Global Hedge Fund
Bloomberg.com Sun, 03 Aug 2008 9:50 PM PDT
Aug. 4 (Bloomberg) -- Citigroup Inc. is closing a $400 million convertible arbitrage fund, the final step in winding down its $2 billion Tribeca Global Investments group, people familiar with the plans said.
Bloomberg.com Sun, 03 Aug 2008 9:50 PM PDT
Aug. 4 (Bloomberg) -- Citigroup Inc. is closing a $400 million convertible arbitrage fund, the final step in winding down its $2 billion Tribeca Global Investments group, people familiar with the plans said.
AXA FOFs AUM Jumps to $5.7 Billion
By: Bill McIntosh, Senior Financial Correspondent
Posted: 08/04/2008 1:53:19 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3561.html
By: Bill McIntosh, Senior Financial Correspondent
Posted: 08/04/2008 1:53:19 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=peop&story=peop3561.html
Chinese banks top global list by avoiding troubled debt
Chinese banks rose to the top ranks of global banking by avoiding the debt instruments that battered the balance sheets of their rivals. Three of the top six spots of the world's largest financial companies based on market value are held by Chinese banks. Beijing's Industrial and Commercial Bank of China and China Construction Bank lead the pack, followed by London's HSBC Holdings at No. 3. Bloomberg (04 Aug.)
Chinese banks rose to the top ranks of global banking by avoiding the debt instruments that battered the balance sheets of their rivals. Three of the top six spots of the world's largest financial companies based on market value are held by Chinese banks. Beijing's Industrial and Commercial Bank of China and China Construction Bank lead the pack, followed by London's HSBC Holdings at No. 3. Bloomberg (04 Aug.)
Kuwati sovereign fund eyes bigger Japanese portfolio
The Kuwait Investment Authority is planning to "double or triple" its exposure to Japan, in a move that could take its total investment to $50bn (?32.1bn), Mustapha al-Shamali, the Gulf state's finance minister, said. (Financial Times)
http://mail2.efnmail.co.uk/r/385882/MTk4MTI1OjE4MTc2/
The Kuwait Investment Authority is planning to "double or triple" its exposure to Japan, in a move that could take its total investment to $50bn (?32.1bn), Mustapha al-Shamali, the Gulf state's finance minister, said. (Financial Times)
http://mail2.efnmail.co.uk/r/385882/MTk4MTI1OjE4MTc2/
By KAJA WHITEHOUSE
After months of falling financial stocks and rising oil prices, July's sudden turnaround was a welcome relief to average investors. Not so for hedge funds - including subprime-mortgage superstar Phil Falcone. That's because a number of...
Small companies turn to hedge funds for loans
With small companies struggling to borrow from banks, hedge funds have entered the market by offering loans guaranteed by borrowers' assets. The commercial loans are backed by anything from a company's inventory to its accounts receivable. The loans cost more, require lenders to scrutinize assets more thoroughly and sometimes require physical inspections that most banks wouldn't conduct, said Andrej Suskavcevic, CEO of the Commercial Finance Association, a trade group of about 300 asset-based lenders. BusinessWeek (01 Aug.)
With small companies struggling to borrow from banks, hedge funds have entered the market by offering loans guaranteed by borrowers' assets. The commercial loans are backed by anything from a company's inventory to its accounts receivable. The loans cost more, require lenders to scrutinize assets more thoroughly and sometimes require physical inspections that most banks wouldn't conduct, said Andrej Suskavcevic, CEO of the Commercial Finance Association, a trade group of about 300 asset-based lenders. BusinessWeek (01 Aug.)
_________________________________________________________________________
Yield Curve Corner
The Fed's flight of the doves
CNNMoney.com - USA
Fed chairman Ben Bernanke essentially contradicted the language in the June statement about downside economic risks diminishing when he told Congress that ...
CNNMoney.com - USA
Fed chairman Ben Bernanke essentially contradicted the language in the June statement about downside economic risks diminishing when he told Congress that ...
_________________________________________________________________________
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/FSHSnorthwest217_G11.jpg
Houston Chronicle - 1 hour ago
Bloomberg - 3 hours ago
By Brian K. Sullivan Aug. 4 (Bloomberg) -- Tropical Storm Edouard prompted evacuations of some oil and gas rigs in the Gulf of Mexico as it struggled to intensify before an expected landfall near Galveston, Texas, the biggest US petroleum port.
_________________________________________________________________________
Iranian Situation and Other Man Made Disasters
Big powers renew sanctions threat on Iran
AFP via Yahoo! News Mon, 04 Aug 2008 11:48 AM PDT
The six powers holding nuclear talks with Tehran threatened Monday to pursue new punitive action against Iran if it does not accept their offer of incentives to freeze uranium enrichment operations.
AFP via Yahoo! News Mon, 04 Aug 2008 11:48 AM PDT
The six powers holding nuclear talks with Tehran threatened Monday to pursue new punitive action against Iran if it does not accept their offer of incentives to freeze uranium enrichment operations.
Iran tests 'new weapon' for use at sea
AP via Yahoo! News Mon, 04 Aug 2008 10:12 AM PDT
Iran announced Monday that it has tested a new weapon capable of sinking ships nearly 200 miles away, and reiterated threats to close a strategic waterway at the mouth of the Persian Gulf if attacked.
AP via Yahoo! News Mon, 04 Aug 2008 10:12 AM PDT
Iran announced Monday that it has tested a new weapon capable of sinking ships nearly 200 miles away, and reiterated threats to close a strategic waterway at the mouth of the Persian Gulf if attacked.
U.S.: Nations to seek new sanctions on Iran
USA Today Mon, 04 Aug 2008 7:49 AM PDT
The Bush administration says the five permanent members of the U.N. Security Council and Germany have agreed to pursue further sanctions against Iran over its suspect nuclear program after it failed to meet a weekend deadline to respond to an incentives package designed to defuse the dispute.
USA Today Mon, 04 Aug 2008 7:49 AM PDT
The Bush administration says the five permanent members of the U.N. Security Council and Germany have agreed to pursue further sanctions against Iran over its suspect nuclear program after it failed to meet a weekend deadline to respond to an incentives package designed to defuse the dispute.
Iran: Mottaki At OIC Meeting In Saudi Arabia
August 4, 2008 1558 GMT
Iranian Foreign Minister Manouchehr Mottaki is in Saudi Arabia on Aug. 4 for a meeting of the...
http://www.stratfor.com/sitrep/iran_mottaki_oic_meeting_saudi_arabia
August 4, 2008 1558 GMT
Iranian Foreign Minister Manouchehr Mottaki is in Saudi Arabia on Aug. 4 for a meeting of the...
http://www.stratfor.com/sitrep/iran_mottaki_oic_meeting_saudi_arabia
_________________________________________________________________________
Opalesque’s Corner
- Opalesque Exclusive: What happened last week: 28 July - 1 August, 2008
- Fund launches: Amaranth veteran launches healthcare hedge fund, the Tokum Partners Fund, Nau Cap launches $310m global macro hedge fund, Fidelity has launched Optimised European Market Neutral Fund, Henderson to start Absolute Return Fixed Income Fund
- Closures: Citigroup said to shutter remaining Tribeca Global Hedge Fund
- Performance: Hedge star Odey earns GBP27.9m ($55.5m) as profits soar, European flagship fund up 15% in first half, Basso hedge fund puts pressure on staff members after posting losses in all strategies, Boyer Allan flagship fund posts 28% loss due to June jump in oil prices
- Hedge funds have worst month for six years, lost almost 3% in July, 3.96% YTD - HFR, Global macro funds hit by oil price reversal, lost over 5% in July`s fortnight - HFR, Alternatives show potential in Asia, although average Asian HF lost 8.1% in Q1 (est.)
- Hedge-funds finding it harder to hide from financial crunch, still outperforming broader market
- Credit managers bask in post-crunch glory as bond funds beat equities, Mutual funds that short are doing better than long-only peers
- Assets: A select few fund management groups flourish as assets dry up, A few big houses are seeing their assets fall
- Redemptions: Highland Crusader fund to repay redemptions in stages
- Strategic Alliance between Clontarf Capital and The Beryl Consulting Group to jointly develop and enhance hedge fund due diligence, portfolio construction and risk management processes
- Strategies: Choose strategy wisely in fragmenting hedge fund industry
- Profile: Scion Capital goes through the sub-prime pain barrier
- Trends: Large fund houses turn to multi-asset investment styles
- People: Opalesque Exclusive: Yvonne Wong joins Thaddeus Capital Management as COO, Robert Morse leaves Citigroup Asia-Pacific, Multi-family office MaxCap Partners secures talent from UBS and Credit Suisse
- Opalesque Exclusive: NY Post: Hedgeworld magazine closes shop. Not quite, say Opalesque sources
- Opalesque Exclusive: How will the Merrill Lynch CDO sale effect hedge funds holding the same securities? The valuation questions
- Credit Crunch Update: Lehman in talks to sell mortgage assets, Ambac agrees to pay $850m to reduce CDO exposure, IndyMac files for bankruptcy, Fortis profit halves in turbulent second quarter, Cash-strapped RBS set to sell off stake in Bank of China, Global credit quality dropped again in July - Kamakura index
- A review of the year of the subprime, The big freeze: A year that shook faith in finance
- Regulatory: FSA`s investigation into HBOS plot comes to nothing, SEC wants U.S. companies to use int`l accounting standards, new opportunities for hedge funds, Detectives race to get inside line on fraud but inside trading monitoring more challenging now
- Legal: Citigroup to be charged by Cuomo for securities fraud, New report says SocGen superiors didn`t know about alleged rouge trader
- Asia: Hong Kong as a fund management centre, businesses logged $1,230bln by end-2007, Dow Jones launches India Titans 30 index, Japan close to declaring recession
- Emerging markets see rapid increase in wealth generation, proportion now at 23%
- Environmental: Number of hedge funds investing in greentech on the rise, according to new report
- Commodities: Update: SemGroup`s unit tries to block its bancruptcy deal,
- Event: Hedge Fund Fight Nite 2008 will now take place on October 30 in HK
- Activist News: Judge says GM can participate in Delphi/Appaloosa suit, Daimler informed of foreign hedge fund`s large share buying in company, fund might target takeover, Activism ushers in new mood to Asian region, US ruling on build-up through swaps drives companies to define the issue as it applies to their own shareholders
- News Briefs: Hedge fund Vanderbilt provides $30m for raceway, Jerry Putnam joins FXall board, MSCI Barra launches Global Currency Indices, Barings converts Pacific fund to ASEAN Frontiers fund, Wealth Bulletin`s top 10 most expensive streets in the world
- ...And finally: Least Competent Criminals: `Feel the Bag` and more
- Logon: http://www.opalesque.com/index.php?act=archive
- Fund launches: Amaranth veteran launches healthcare hedge fund, the Tokum Partners Fund, Nau Cap launches $310m global macro hedge fund, Fidelity has launched Optimised European Market Neutral Fund, Henderson to start Absolute Return Fixed Income Fund
- Closures: Citigroup said to shutter remaining Tribeca Global Hedge Fund
- Performance: Hedge star Odey earns GBP27.9m ($55.5m) as profits soar, European flagship fund up 15% in first half, Basso hedge fund puts pressure on staff members after posting losses in all strategies, Boyer Allan flagship fund posts 28% loss due to June jump in oil prices
- Hedge funds have worst month for six years, lost almost 3% in July, 3.96% YTD - HFR, Global macro funds hit by oil price reversal, lost over 5% in July`s fortnight - HFR, Alternatives show potential in Asia, although average Asian HF lost 8.1% in Q1 (est.)
- Hedge-funds finding it harder to hide from financial crunch, still outperforming broader market
- Credit managers bask in post-crunch glory as bond funds beat equities, Mutual funds that short are doing better than long-only peers
- Assets: A select few fund management groups flourish as assets dry up, A few big houses are seeing their assets fall
- Redemptions: Highland Crusader fund to repay redemptions in stages
- Strategic Alliance between Clontarf Capital and The Beryl Consulting Group to jointly develop and enhance hedge fund due diligence, portfolio construction and risk management processes
- Strategies: Choose strategy wisely in fragmenting hedge fund industry
- Profile: Scion Capital goes through the sub-prime pain barrier
- Trends: Large fund houses turn to multi-asset investment styles
- People: Opalesque Exclusive: Yvonne Wong joins Thaddeus Capital Management as COO, Robert Morse leaves Citigroup Asia-Pacific, Multi-family office MaxCap Partners secures talent from UBS and Credit Suisse
- Opalesque Exclusive: NY Post: Hedgeworld magazine closes shop. Not quite, say Opalesque sources
- Opalesque Exclusive: How will the Merrill Lynch CDO sale effect hedge funds holding the same securities? The valuation questions
- Credit Crunch Update: Lehman in talks to sell mortgage assets, Ambac agrees to pay $850m to reduce CDO exposure, IndyMac files for bankruptcy, Fortis profit halves in turbulent second quarter, Cash-strapped RBS set to sell off stake in Bank of China, Global credit quality dropped again in July - Kamakura index
- A review of the year of the subprime, The big freeze: A year that shook faith in finance
- Regulatory: FSA`s investigation into HBOS plot comes to nothing, SEC wants U.S. companies to use int`l accounting standards, new opportunities for hedge funds, Detectives race to get inside line on fraud but inside trading monitoring more challenging now
- Legal: Citigroup to be charged by Cuomo for securities fraud, New report says SocGen superiors didn`t know about alleged rouge trader
- Asia: Hong Kong as a fund management centre, businesses logged $1,230bln by end-2007, Dow Jones launches India Titans 30 index, Japan close to declaring recession
- Emerging markets see rapid increase in wealth generation, proportion now at 23%
- Environmental: Number of hedge funds investing in greentech on the rise, according to new report
- Commodities: Update: SemGroup`s unit tries to block its bancruptcy deal,
- Event: Hedge Fund Fight Nite 2008 will now take place on October 30 in HK
- Activist News: Judge says GM can participate in Delphi/Appaloosa suit, Daimler informed of foreign hedge fund`s large share buying in company, fund might target takeover, Activism ushers in new mood to Asian region, US ruling on build-up through swaps drives companies to define the issue as it applies to their own shareholders
- News Briefs: Hedge fund Vanderbilt provides $30m for raceway, Jerry Putnam joins FXall board, MSCI Barra launches Global Currency Indices, Barings converts Pacific fund to ASEAN Frontiers fund, Wealth Bulletin`s top 10 most expensive streets in the world
- ...And finally: Least Competent Criminals: `Feel the Bag` and more
- Logon: http://www.opalesque.com/index.php?act=archive
_________________________________________________________________________
Misc. Items of Interest
_____________________________________________________________________
Funnies, Facts, Quotes, etc….
obeisance oh-BEE-suhn(t)s; oh-BAY-suhn(t)s, noun:
1. An expression of deference or respect, such as a bow or curtsy.
2. Deference, homage.
2. Deference, homage.
_________________________________________________________________________
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:
_________________________________________________________________________
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
_________________________________________________________________________
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.
|
Manage your subscription
|