Main News

 

Credit Markets
Washington Post business columnist Steven Pearlstein discusses the Federal Reserve's policy and continuing turmoil in the financial markets.
(Steven Pearlstein, washingtonpost.com)

 

http://www.nypost.com/seven/08082007/business/sp_warns_of_alt_a_mortgage_losses_business_.htm
Bloomberg
Standard & Poor's may cut its ratings on $913.9 million of mortgage securities backed by Alt-A loans because of rising delinquencies and losses that may "exceed historical precedent." S&P placed 207 classes of bonds rated from October 2005 through December 2006 on...

 

Hedge-fund investors can escape lock-up period, but should they?
Market Watch Tue, 07 Aug 2007 4:30 PM PDT
SANTA MONICA, Calif. (MarketWatch) -- If you invest in a hedge fund, you are usually subject to what is known as a lock-up period; it's a certain amount of time -- a year, two, or even 10 -- when you are barred from liquidating your money.

 

"There have been some well-publicized losses among a few high-profile funds that invest in sub-prime mortgages," says Sol Waksman, founder and president of The Barclay Group. More... <http://www.hedgefund-index.com/newstoday.asp>

 

WestLB Mellon venture freezes assets -- [at FT.com]
By Ivar Simensen in Frankfurt FT.com
8/7/2007 3:12:48 PM

 

Re-evaluating valuation

by Jayne Jung

The losses in US subprime mortgages have revealed discrepancies in the valuation of CDO of ABS tranches

 

Imagine the chuttzpah of the analyst at Standard & Poors, a unit of McGraw Hill (NYSE:MHP), who wrote those words regarding the Bear, Stearns Companies (NYSE:BSC) last Friday. As we read the S&P opinion on BSC, the thought occurred: In coming months, we may well read similar words regarding MHP and Moody's Corp (NYSE:MCO).

Full Story...

 

More on July's winners and losers in the hedge fund world
FT Alphaville - London,UK
The FT's hedge fund correspondent, James Mackintosh, reports on Wednesday that hedge funds weathered the storm in the markets over the final two weeks of ...

 

Court lifts hedge fund assets freeze
Financial News Online US - London,UK
A court has released assets at a specialist commodities hedge fund, which was under suspicion for misrepresenting its investments, after enraged ...

 

CreditWatch And Rating Outlooks Provide Powerful Warning Signals
A new study by Standard & Poor's confirms earlier findings that CreditWatch and rating outlooks provide powerful signals of future rating changes. This is Standard & Poor's first published analysis of CreditWatch performance for Structured Finance ratings. In recent years, ratings in this sector have experienced increased volatility, and market participants are more sensitive to potential rating changes. In this more volatile environment, CreditWatch placements have increased significantly, providing credit signals on the near-future movements of Structured Finance ratings.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQUDABQTVsLgHxhilpuHQJhuV2VR

 

Mortgage sector faces further tightening -- [at FT.com]
By David Wighton, Saskia Scholtes and Michael Mackenzie in New York FT.com
8/7/2007 3:57:56 PM

 

German Fund Stops Payouts, Citing Mortgage Market Unease -- [at NY Times]
By BLOOMBERG NEWS New York Times
08/08/2007 01:33:25

 

Subprime `Tsunami' Hits Asset-Backed Commercial Paper Market
Bloomberg - USA
8 (Bloomberg) -- Companies are extending payments on commercial paper backed by home loans for the first time as the subprime mortgage crisis spreads to ...
See all stories on this topic

 

 

Bear Investor Suing Over Hedge Crisis
Bear Stearns investor Navigator Capital is suing the Wall Street firm over its hedge fund blowup. The lawsuit, filed in New York, named several Bear Stearns senior personnel while demanding a grand jury trial.
[more

 

By Thomas Kostigen MarketWatch8/7/2007 7:22:00 PM By Thomas Kostigen MarketWatch8/7/2007 7:22:00 PM By Thomas Kostigen MarketWatch8/7/2007 7:22:00 PM

S&P WARNS OF ALT-A MORTGAGE LOSSES:

Not putting out
America's economy is faltering, but rates are kept on hold
Full article

Tuesday , 07 Aug 2007
The uranium spot price falls again, triggering another big round of profit taking.

US report slams consultant conflicts US - US regulatory agencies are not adequately enforcing the disclosure of investment consultants’ conflicts of interest, a situation exacerbated by a combination of outdated laws, poor formal coordination between agencies and insufficient investigative resources, according to a government report.

 

_________________________________________________________________________

Yield Curve Corner

 

 

_________________________________________________________________________

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/TRCwutip220_GJ.jpg

 

PHOTOS: TORRENTIAL STORM ROCKS NY
ABC News - USA
Thunder and lightning began pounding down New York City early Wednesday morning, prompting a tornado warning in Brooklyn and Southeast Queens boroughs. ...
See all stories on this topic

 

Are U.S. Insurers Ready If The Calm Season Turns?
The dire hurricane season originally forecasted for 2007 looked accurate when tropical storms Andrea and Barry formed before the season's official June 1 start. As of early August, however, 2007 looks more like 2006, which had only 10 named storms. This season could still become quite active because about 90% of Atlantic Basin hurricanes emerge from August through October. If 2007 turns out to be more vigorous on the weather front, some industry sectors could be vulnerable.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQUDABQTVsLgHxhilpuHQJhuV2VY

 

Magnitude-7.4 Quake Hits Indonesia
A powerful earthquake of magnitude 7.4 has hit Indonesia, near the capital of Jakarta.
MORE DETAILS: <http://www.wnbc.com/tu/5qWFE8HpY.html>

 

In the Midwest, where tornadoes reign, commercial insurance agents struggle to find sufficient coverage for their business clients.

Full Story...

 

The Alternative Investment Management Association (AIMA) has responded to the International Organization of Securities Commissions’ (IOSCO) Consultation Report "Call for Views on Issues that could be addressed by IOSCO on Funds of Hedge Funds".

Full Story...

_________________________________________________________________________

Iranian Situation

 

U.S. says Iran- supplied bomb is killing more troops in Iraq
International Herald Tribune Tue, 07 Aug 2007 8:17 PM PDT
Attacks on American forces in Iraq using a lethal type of roadside bomb said to be supplied by Iran reached a new high in July, according to the U.S. military.

 

_________________________________________________________________________

Avian Flu

 

Avian influenza  (Epidemic and Pandemic Alert and Response (EPR))
Avian influenza (Western Pacific Region)
Influenza and avian influenza (European Region)

Avian influenza (Fact Sheet)

Q&A: Avian influenza: am I at risk?

 

_________________________________________________________________________

Opalesque’s Corner

 

- HFRX Global Hedge Fund Index -0.93% in July, Eurekahedge Hedge Fund Index returns 1.2%, Asian, emerging markets doing particularly well (3.9%),  Barclay Hedge Fund Index gains 0.62% in July, ratio of winners to losers dropped to 55/45 versus approximately 80/20 for first six months,  Dow Jones: July weakest month in 2007, only three of six strategies positive
- Germany`s Frankfurt Trust halts redemptions, Wouldn`t it be a delicious irony if one or both of the major ratings agencies were forced into bankruptcy due to legal claims made regarding CDOs?
- Navigator Capital sues Bear over hedge fund losses
- Paulson, Hyman hedge funds up 303% and 305%, Goldman fund falls 16%,  Goldman denies talk of Alpha fund liquidation
- Opalesque Exclusive: Arundel Iveagh`s European seeding platform offers `cornerstone investors` three return streams
- Dexia Research: Impact of US Subprime crisis on Equity Markets - Risk repricing or a cycle turnaround ahead?, Swedish hedge fund managers welcome market unrest
- Former AIG chief investment officer aims to raise $20m for new Japan hedge fund
- Credit Suisse Tremont launches Market Defender basket of sector indices
- CLSA teams up with ex-HSBC hedgie supremo Paul Smith, new venture Asia Alternative Asset Partners to offer working capital, seed money and distribution for both growing and rookie hedge fund managers
- Hedge Fund Asset Concentration: Lower Gini Coefficient for hedge funds only proves  largest hedge funds tend to have relatively similar asset sizes
- Back in Backwardation: It`s finally safe for commodity futures investors,  Enhanced new exchange-traded note (ETN) from Goldman Sachs aims to beat the index by sidestepping contango
- Art dealer Luxembourg urges buyers be wary of `uber-marketing`, `artists are under pressure to produce`
- BNY ConvergEx Group makes strategic investment in software/outsourcing firm AIM-TO
- `They know ahead`: Banks, funds look to meteorologists for trading edge,  Extreme weather the norm across globe: First cyclone in Oman, highest temperatures since 1800
- Bank of America names head of hedge funds, alternatives program in US Trust integration
- Ex-Amaranth`s Brian Hunter says federal investigation hurts start-up of new fund biz
- Appellate court rules in Lake Shore`s favor, cites constitutional issues,  lifts freeze
- Early Massachusetts defeat doesn`t discourage Goldstein
- SEC inspector general retires as report on Pequot probe blasts performance
- Mark Lay trial delayed
- Startup launches real estate index
- Hedge funds short LSE, Project Turquoise aims for April launch,  HKEx studies emissions and commodity derivatives
- Brazil capital market boom lures bankers, business, hedge fund Drake opens Sao Paulo office
- Opalesque Exclusive: `Fierce activist` campaign starts against Unilab chairman Zirn who got acquiring firm to pay a premium - oh, for his shares only...
- Largest Finish pension successful with alternatives, `particularly hedge funds`
- Robeco beats F&C to 130/30 Europe
- India`s retail market: At least 5 years before we even start to see a solidcountrywide offering of modern retail, full maturity is 20 years away
- Japan mulls creation of Y200trn mega fund
- Activist News: Ackman aims at Target`s land, Steel Partners loses final court appeal, Steel Partners presses on with Bull-Dog bid, Japanese government warns companies on defences
- News Briefs: Fortress up as KBW starts coverage with `outperform`, Time to exit microcap and emerging markets funds, newsletter says, Brevan Howard hedge fund manager Rokos plans GBP 38m luxury home in former U.K. Hotel
- ...And finally:  He even started his own hedge fund! (At 14 years...)
- Logon: http://www.opalesque.com/main.php?act=archive

 

_________________________________________________________________________

Misc. Items of Interest

 

Where's the Beef, Indeed: A Steak Shortage Hits N.Y.
BY CHRISTOPHER FAHERTY - Special to the Sun
The country's effort to move away from a dependence on foreign oil and embrace green initiatives appears to be behind a change in one of New York's purest traditions, the menu of the classic steakhouse. The production of ethanol, which is made from...

 

NO. 2 AT PORTFOLIO IS HISTORY: http://www.nypost.com/seven/08082007/business/no__2_at_portfolio_is_history_business_brian_garrity.htm
By BRIAN GARRITY
Jim Impoco is out as deputy editor of Portfolio - even before Condé Nast's much-hyped new business magazine has published its second issue. No reason was given for his departure, effective yesterday. A Portfolio spokesperson declined to say whether he quit or was fired. A successor has not...

 

_____________________________________________________________________

Funnies, Facts, Quotes, etc….

 

abed uh-BED, adverb:

In bed.

 

1963:  Armed robbers stole £2.6 million from the Glasgow-London Royal Mail Train near Bridego Bridge, north of London, in the Great Train Robbery.

1945:  The United States, the Soviet Union, Great Britain, and France signed the London Agreement, which authorized the Nürnberg trials.

1907:  Jazz musician Benny Carter was born in New York City.

1901:  American physicist Ernest Orlando Lawrence—winner of the 1939 Nobel Prize for Physics for his invention of the cyclotron, the first particle accelerator to achieve high energies—was born in Canton, South Dakota.

1846:  The Wilmot Proviso, an attempt to prohibit the extension of slavery to new territories in the United States, was proposed, and, in the debate that followed, the Republican Party was born.

1588:  The English fleet won a decisive battle over the Spanish Armada off the coast of Gravelines in northern France.

 

ODDLY ENOUGH NEWS
Telekom model waits 3 months for phone line
August 07, 2007 10:33 AM ET
BERLIN (Reuters) - A fashion model who features in a high-profile
advertising campaign for Deutsche Telekom has threatened to
seek another provider after waiting three months for the company
to install a new phone line at her apartment.
http://links.reuters.com/t/ESGKG/ZAQBN/GX/UIRTX?a1=nl_usmorningdigest

_________________________________________________________________________

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)

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

_________________________________________________________________________

Regulatory Info

 

 

_________________________________________________________________________

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.