Archive: 10/08/2008
Main News
Dollar May Extend Decline After Bernanke Signals Lower Rates
Bloomberg - USA
By Stanley White and Ye Xie Oct. 8 (Bloomberg) -- The dollar traded near a six-month low against the yen after Federal Reserve Chairman Ben S. Bernanke ...
Bloomberg - USA
By Stanley White and Ye Xie Oct. 8 (Bloomberg) -- The dollar traded near a six-month low against the yen after Federal Reserve Chairman Ben S. Bernanke ...
Geopolitical Diary: The Credit Crunch's Effects Outside the United States
October 7, 2008 0157 GMT
While the United States' $700 billion bailout will take effect soon, other countries are having a harder time coping with the credit crunch.
http://www.stratfor.com/geopolitical_diary/20081006_geopolitical_diary_credit_crunchs_effects_outside_united_states
October 7, 2008 0157 GMT
While the United States' $700 billion bailout will take effect soon, other countries are having a harder time coping with the credit crunch.
http://www.stratfor.com/geopolitical_diary/20081006_geopolitical_diary_credit_crunchs_effects_outside_united_states
RBS down after counterparty rating cut by S&P
Oct 06 2008 20:54
The bank saw the biggest one-day drop in its share price for 20 years on Monday, with the stock tumbling by more than a quarter, as Standard & Poor's, the rating agency, cut the lender's long and short-term counterparty credit ratings Read more »
Oct 06 2008 20:54
The bank saw the biggest one-day drop in its share price for 20 years on Monday, with the stock tumbling by more than a quarter, as Standard & Poor's, the rating agency, cut the lender's long and short-term counterparty credit ratings Read more »
News and analysis on financial crisis
The financial system has been rocked by a succession of failures and government bail-outs causing stunned counterparties to flee the interbank lending markets.
The financial system has been rocked by a succession of failures and government bail-outs causing stunned counterparties to flee the interbank lending markets.
Oct 6, 2008 ... VIX Jumps to Record, Topping 56, on `Mad Rush' to Sell Assets. By Jeff Kearns. Oct. 6 (Bloomberg) -- The benchmark index for U.S. stock ...
Quietly, Fed drops rates. Using its new-found power to pay interest on bank reserves, the Fed effectively lowered the overnight lending rate by 0.75% to 1.25%. At the same time, it doubled the cash funding its short-term bank-lending facility to $900B. Economists said
the 0.75% spread came as a surprise. The Fed says it will adjust the target vs. effective spread "based on experience and in response to evolving market conditions." Fed may foray into unsecured debt. In an effort to address tensions in the commercial paper market, the Fed is considering making an unprecedented move into unsecured lending, WSJ reports. When the Fed rolled out measures to loosen up the asset-backed commercial paper (ABCP) market in September, some debt brokers complained the move could kill demand for the unsecured paper relied on by foreign banks and companies. Yesterday, Pimco's Bill Gross called on the
Fed to start buying commercial paper, coupled with a drop in its target rate to just 1%. BofA coughs up dismal Q3. Shares of Bank of America (BAC) fell 10% in extended trading Monday after it preannounced weaker-than-expected earnings, halved its dividend to $0.32, and initiated a common stock issue of at least $10B. "The recession is going to be a little deeper than we thought," CEO Ken Lewis said on a conference call. "It's going to take some more time and some more pain." Profit fell 68% to $1.18B. EPS of $0.15 was a mere quarter of the $0.61 analyst
consensus. "We don't look real smart today, given what's happened," Lewis said, "But all in all we just thought it was prudent to get out there sooner rather than later."
Icelandic government acts to avert economic collapse
The Icelandic parliament approved legislation that gives the government broad authority over the country's banks, including the ability to force them to merge or sell off subsidiaries as well as the ability to seize assets. The government is expected to fully nationalize Landsbanki and Glitnir soon, while a third bank, Kaupthing, was forced to accept state loans. Turmoil in the banking system has triggered panic among Iceland's 300,000 residents. The Times (London) (07 Oct.) , The Guardian (London) (07 Oct.) , Financial Times (07 Oct.)
The Icelandic parliament approved legislation that gives the government broad authority over the country's banks, including the ability to force them to merge or sell off subsidiaries as well as the ability to seize assets. The government is expected to fully nationalize Landsbanki and Glitnir soon, while a third bank, Kaupthing, was forced to accept state loans. Turmoil in the banking system has triggered panic among Iceland's 300,000 residents. The Times (London) (07 Oct.) , The Guardian (London) (07 Oct.) , Financial Times (07 Oct.)
Hedge Fund Finds Itself on Defense<http://www.hedgefund-index.com/newstoday.asp>
Source: The New York Times
Kenneth C. Griffin was one of those Wall Street whiz kids. As a teenager, he traded out of his dorm room at Harvard. In his 20s, he opened his own hedge fund. In his 30s, he boasted that his company might one day rival Goldman Sachs. More...<http://www.hedgefund-index.com/newstoday.asp>
Source: The New York Times
Kenneth C. Griffin was one of those Wall Street whiz kids. As a teenager, he traded out of his dorm room at Harvard. In his 20s, he opened his own hedge fund. In his 30s, he boasted that his company might one day rival Goldman Sachs. More...<http://www.hedgefund-index.com/newstoday.asp>
Back-to-basics for risk management
The current crisis has shifted focus from quantitative to qualitative views of risk management.
More on Management...
The current crisis has shifted focus from quantitative to qualitative views of risk management.
More on Management...
The following is a statement by the President’s Working Group on the Financial Markets.
Global Market Brief: Handling the Global Credit Crunch. By: Stratfor Tuesday, October 07, 2008 6:14 PM. author information Author. Author's Bio and Articles ...
Hedge investors ask for lock-ups to avoid closures
Reuters - USA
By Laurence Fletcher ZURICH, Oct 7 (Reuters) - Hedge fund investors are increasingly demanding longer lock-ups for their money -- a move almost unheard of a ...
Reuters - USA
By Laurence Fletcher ZURICH, Oct 7 (Reuters) - Hedge fund investors are increasingly demanding longer lock-ups for their money -- a move almost unheard of a ...
AIG Had Warnings on Risk: Lawmaker
By: Reuters
Posted: 10/07/2008 2:15:14 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15310.html
By: Reuters
Posted: 10/07/2008 2:15:14 PM ET
http://www.hedgeworld.com/news/read_news.cgi?section=dail&story=dail15310.html
Afghanistan: The Taliban's Break With Al Qaeda. October 7, 2008 | 1624 GMT. Taliban militia members in Afghanistan. STR/AFP/Getty Images. Taliban militia ...
@VIC: Top Hedge Fund Picks by Mebane Faber
Latest On Hedge Funds, Banks And Bailouts [Housing Tracker] by SA Editor Judy Weil
CDS Market: It's Crunch Time by Sean Maher
Can Both Large and Small Hedge Funds Survive? by David Enke
Latest On Hedge Funds, Banks And Bailouts [Housing Tracker] by SA Editor Judy Weil
Bill Ackman Piled Into Wachovia and AIG Shares by SA Editors
Long Gold and Silver: A Lifeline for Struggling Hedge Funds? by Peter Cooper
Basel Also Keeping an Eye On Hedge Fund Leverage by Christopher Holt
Traders Use CDS to Bet On States
A new type of shorting is gaining notoriety as investors employ exotic derivatives to bet on the activities of state funds.
A new type of shorting is gaining notoriety as investors employ exotic derivatives to bet on the activities of state funds.
Damaged Option Dealers at Risk if Yen Surges More
By: Reuters
Posted: 10/07/2008 11:05:38 AM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3614.html
By: Reuters
Posted: 10/07/2008 11:05:38 AM ET
http://www.hedgeworld.com/news/premium/read_news.cgi?section=peop&story=peop3614.html
The Duplicitous Sheila Bair
Did the F.D.I.C. chief encourage Wells Fargo to try to snatch Wachovia from Citi? Read More
Did the F.D.I.C. chief encourage Wells Fargo to try to snatch Wachovia from Citi? Read More
The Chicago Mercantile Exchange is teaming up with Citadel to launch a credit default swaps trading platform and central counterparty facility. News of the move comes as the Federal Reserve meets with industry leaders to push for new risk mitigation techniques in the over-the-counter markets.
More on this story: http://www.finextra.com/fullstory.asp?id=19099
More on this story: http://www.finextra.com/fullstory.asp?id=19099
Pershing Square's Ackman says Short Sale Ban Hurt
Reuters - Tuesday October 07, 09:18 BST
Reuters - Tuesday October 07, 09:18 BST
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Yield Curve Corner
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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/TRCnorbert281_G10.jpg
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Iranian Situation and Other Man Made Disasters
Iran forces down Hungarian flight
AP via Yahoo! News Tue, 07 Oct 2008 12:14 PM PDT
Iran forced an aircraft carrying Hungarian military officials to land after it entered its airspace, Hungary's Defense Ministry said Tuesday. The plane was allowed to continue to Afghanistan after it was determined the entry was accidental.
AP via Yahoo! News Tue, 07 Oct 2008 12:14 PM PDT
Iran forced an aircraft carrying Hungarian military officials to land after it entered its airspace, Hungary's Defense Ministry said Tuesday. The plane was allowed to continue to Afghanistan after it was determined the entry was accidental.
Ahmadinejad and Larry King
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Opalesque’s Corner
- Fund Launches - GAM is planning a distressed fund
- Opalesque Exclusive: GAM contributes in Julius Baer`s 20% share collapse, Artio`s listing may be postponed
- Close Man hedge fund suspends redemptions on outflows, Toscafund seeks to restructure largest fund after 52% drop
- Performance - Update: Paulson`s Advantage Fund +4.3% in September, Tontine Associates` star hedge fund crashes to earth, Tyser`s Firefly fund +3.7%, Horseman Global Stock Fund +5.7%, Millgate Capital +4.3%, Citadel`s Griffin finds himself on the defensive as funds are down, Quant hedge funds Tudor, Medallion post big gains, Mentor Capital`s lead hedge fund gains 6% in 3Q on non-financials
- Opalesque Exclusive: HFRI Global Hedge Fund Index down 6.90% (est.), HFRX Convertible Arbitrage Index worst at -16.55% (est.), HFRX Equity Market Neutral Index, best at -0.24% (est.)
- Opalesque Exclusive: Liability Solutions and MIT Associates merge to become hedge fund placement firm and represent 1,200 institutional investors, see industry assets reallocating amongst strategies and managers, but continuing to grow
- British HF Capula sells `passive` stake to Mitsubishi
- Opalesque Exclusive: Innocap adds global macro manager Danix to its platform
- FoHFs - IOSCO publishes regulatory standards for funds of hedge funds, HFN publishes new report on FoHFs` trends, and the reason for their underperformance
- US Bailout Plan Update - Largest funds favored to oversee U.S. bailout job, Treasury procedures for selecting asset managers, Fed working with Treasury to move into unsecured loans, Fed to bolster liquidity in credit and commercial paper markets, US Treasury issues RFPs for rescue program, FDIC working to bolster fund for more bank failures, Fed to provide as much as $900bln in loans to banks, Pimco's Gross: Fed must act to avoid lengthy recession
- Credit Crisis Update - Rate-cut speculation grows amid tumult, Banks prepare for CDS pay-outs, Credit market rout is making this the best year for options traders, Barton Biggs: global rate cuts are needed to boost economies, AIG`s complexity blamed for fall, former chief executives to testify in US Congress today, Pope says world financial system `built on sand`
- Lehman Update - Fuld said Lehman didn`t mislead investors, `one of the best leverage ratios on the street`, Fuld said Lehman was victim of short sellers, Dick Fuld testimony (video), Nomura to buy Lehman`s Indian IT operations
- Short Selling Regulation - Battered financial industry faces more oversight, Pershing Square`s Ackman says short sale ban hurts, Europe`s largest HF managers and investors call for end to ban on short selling, Short-selling ban hits 130/30 funds, average -20.85% YTD
- Regulatory - US Congressman Barney Frank calls for more regulation of financial industry, India`s regulator lifts curbs on offshore derivatives
- Wachovia Update - Citi and Wachovia in legal truce, Pershing`s Ackman says Wachovia should sell businesses separately, Ackman on Wachovia (video)
- Legal - Bank of America settles suits over bad mortgages, will pay $8bln+ to modify loans to help keep people in their homes, BofA to raise $10bln in capital and halve dividend to ride out credit crisis, Sun Country Airlines files for bankruptcy after owner Thomas Petters was arrested
- Institutions - Ohio Highway Patrol seeks FoHFs
- People - Investcorp appoints James Tanner as Head of Placement and Relationship Management, LaSalle I.M. named Akira Nishimura head of client services for Japan, Da Vinci hires new portfolio manager, Resolution A.M. appoints Tim Sweeting as head of alternatives, Dexia gains new chairman, CEO, CalPERS searches for Corporate Governance Officer, Conyers Dill & Pearman appoints Christopher Johnson-Gilbert as Managing Partner of London office
- Europe - Europe governments not coordinated in crisis handling, UK discussing cash injection for banks, Germany may have to `restructure` banking system, Update: BNP takes control of Fortis in Eur14.5bln deal, Russian shares plunge and trading suspended multiple times, Iceland in crisis, takes emergency action, Survey: Wall Street contagion to hit European companies soon, and hard
- Africa - Law firm Conyers Dill & Pearman establishes Mauritius office, to provide advice on Mauritius law
- Asia - Japan Prime Minister hints at boost to stimulus package as stocks plunge to 5-year low, Yen jumps on hopes for Japan, India cuts its cash-reserve ratio to add liquidity to bank
- Australasia - Opalesque Exclusive: Kiwi angel seeds hedge fund, Australia cuts key rate by 1 point, most since 1992
- Emerging markets hit by global sell-off
- Environmental Investing - European Energy Exchange says German power trading doubled on credit worry, Concentrated solar power and the big winner of the bailout package
- Commodities - Oil drops 6% to below $88 on demand concerns, Read Opalesque`s free daily commodities publication, the Opalesque Commodities Briefings
- Read Opalesque`s new free daily Real Estate publication, the Opalesque Real Estate Briefing
- Activist Investing - Lichtenstein bets aggressive restructuring program at Unisys will reap rewards
- Opalesque Exclusive: Altestque Events presents 2008 Hedge Fund Insider`s Update, NYC, November 10th
- Events - 5th Annual RocktOberfest concert, October 16th, NYC, Hedge Funds Care Canada 5th Annual Open Your Heart to the Children's Gala, Toronto, November 6th
- News Briefs - BarclayHedge and Global Fund Technologies launch MyFundFinder.com, SunGard`s Protegent assists financial services firms in managing SEC short selling rules, Ogier investment team wins `Offshore Law Firm of the Year` for 2008, STOXX to launch new indexes for Eastern Europe, Volkswagen shares benefit from hedge funds forced to close
- And Finally. A cool customer: Cabby takes man from UK to Germany for a GBP2,000 (US$3,480) fare
- Logon: http://www.opalesque.com/index.php?act=archive
- Opalesque Exclusive: GAM contributes in Julius Baer`s 20% share collapse, Artio`s listing may be postponed
- Close Man hedge fund suspends redemptions on outflows, Toscafund seeks to restructure largest fund after 52% drop
- Performance - Update: Paulson`s Advantage Fund +4.3% in September, Tontine Associates` star hedge fund crashes to earth, Tyser`s Firefly fund +3.7%, Horseman Global Stock Fund +5.7%, Millgate Capital +4.3%, Citadel`s Griffin finds himself on the defensive as funds are down, Quant hedge funds Tudor, Medallion post big gains, Mentor Capital`s lead hedge fund gains 6% in 3Q on non-financials
- Opalesque Exclusive: HFRI Global Hedge Fund Index down 6.90% (est.), HFRX Convertible Arbitrage Index worst at -16.55% (est.), HFRX Equity Market Neutral Index, best at -0.24% (est.)
- Opalesque Exclusive: Liability Solutions and MIT Associates merge to become hedge fund placement firm and represent 1,200 institutional investors, see industry assets reallocating amongst strategies and managers, but continuing to grow
- British HF Capula sells `passive` stake to Mitsubishi
- Opalesque Exclusive: Innocap adds global macro manager Danix to its platform
- FoHFs - IOSCO publishes regulatory standards for funds of hedge funds, HFN publishes new report on FoHFs` trends, and the reason for their underperformance
- US Bailout Plan Update - Largest funds favored to oversee U.S. bailout job, Treasury procedures for selecting asset managers, Fed working with Treasury to move into unsecured loans, Fed to bolster liquidity in credit and commercial paper markets, US Treasury issues RFPs for rescue program, FDIC working to bolster fund for more bank failures, Fed to provide as much as $900bln in loans to banks, Pimco's Gross: Fed must act to avoid lengthy recession
- Credit Crisis Update - Rate-cut speculation grows amid tumult, Banks prepare for CDS pay-outs, Credit market rout is making this the best year for options traders, Barton Biggs: global rate cuts are needed to boost economies, AIG`s complexity blamed for fall, former chief executives to testify in US Congress today, Pope says world financial system `built on sand`
- Lehman Update - Fuld said Lehman didn`t mislead investors, `one of the best leverage ratios on the street`, Fuld said Lehman was victim of short sellers, Dick Fuld testimony (video), Nomura to buy Lehman`s Indian IT operations
- Short Selling Regulation - Battered financial industry faces more oversight, Pershing Square`s Ackman says short sale ban hurts, Europe`s largest HF managers and investors call for end to ban on short selling, Short-selling ban hits 130/30 funds, average -20.85% YTD
- Regulatory - US Congressman Barney Frank calls for more regulation of financial industry, India`s regulator lifts curbs on offshore derivatives
- Wachovia Update - Citi and Wachovia in legal truce, Pershing`s Ackman says Wachovia should sell businesses separately, Ackman on Wachovia (video)
- Legal - Bank of America settles suits over bad mortgages, will pay $8bln+ to modify loans to help keep people in their homes, BofA to raise $10bln in capital and halve dividend to ride out credit crisis, Sun Country Airlines files for bankruptcy after owner Thomas Petters was arrested
- Institutions - Ohio Highway Patrol seeks FoHFs
- People - Investcorp appoints James Tanner as Head of Placement and Relationship Management, LaSalle I.M. named Akira Nishimura head of client services for Japan, Da Vinci hires new portfolio manager, Resolution A.M. appoints Tim Sweeting as head of alternatives, Dexia gains new chairman, CEO, CalPERS searches for Corporate Governance Officer, Conyers Dill & Pearman appoints Christopher Johnson-Gilbert as Managing Partner of London office
- Europe - Europe governments not coordinated in crisis handling, UK discussing cash injection for banks, Germany may have to `restructure` banking system, Update: BNP takes control of Fortis in Eur14.5bln deal, Russian shares plunge and trading suspended multiple times, Iceland in crisis, takes emergency action, Survey: Wall Street contagion to hit European companies soon, and hard
- Africa - Law firm Conyers Dill & Pearman establishes Mauritius office, to provide advice on Mauritius law
- Asia - Japan Prime Minister hints at boost to stimulus package as stocks plunge to 5-year low, Yen jumps on hopes for Japan, India cuts its cash-reserve ratio to add liquidity to bank
- Australasia - Opalesque Exclusive: Kiwi angel seeds hedge fund, Australia cuts key rate by 1 point, most since 1992
- Emerging markets hit by global sell-off
- Environmental Investing - European Energy Exchange says German power trading doubled on credit worry, Concentrated solar power and the big winner of the bailout package
- Commodities - Oil drops 6% to below $88 on demand concerns, Read Opalesque`s free daily commodities publication, the Opalesque Commodities Briefings
- Read Opalesque`s new free daily Real Estate publication, the Opalesque Real Estate Briefing
- Activist Investing - Lichtenstein bets aggressive restructuring program at Unisys will reap rewards
- Opalesque Exclusive: Altestque Events presents 2008 Hedge Fund Insider`s Update, NYC, November 10th
- Events - 5th Annual RocktOberfest concert, October 16th, NYC, Hedge Funds Care Canada 5th Annual Open Your Heart to the Children's Gala, Toronto, November 6th
- News Briefs - BarclayHedge and Global Fund Technologies launch MyFundFinder.com, SunGard`s Protegent assists financial services firms in managing SEC short selling rules, Ogier investment team wins `Offshore Law Firm of the Year` for 2008, STOXX to launch new indexes for Eastern Europe, Volkswagen shares benefit from hedge funds forced to close
- And Finally. A cool customer: Cabby takes man from UK to Germany for a GBP2,000 (US$3,480) fare
- Logon: http://www.opalesque.com/index.php?act=archive
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Misc. Items of Interest
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Funnies, Facts, Quotes, etc….
implacable im-PLAK-uh-bull, adjective:
Not placable; not to be appeased; incapable of being pacified; inexorable; as, an implacable foe.
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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)
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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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