Main News

 

Lehman shuts BNC Mortgage unit, cuts 1200 jobs
MarketWatch - USA
BNC was a top-20 subprime mortgage lender in 2006, originating more than $14 billion worth of home loans, according to industry publication Inside B&C ...
See all stories on this topic

 

 

 

GreenPoint Closure Nips Risk
Capital One removes an operating risk; the closure itself was a neutral event.
http://online.barrons.com/article/SB118764579979503329.html?mod=djemBF

 

 

Structured Finance
Various SIV-Lites Downgraded, Put On CreditWatch Negative, And Affirmed
A vast majority of the portfolios of each of these market value structures is invested in U.S. mortgage securities. The current volatility in the market price of the U.S. mortgage securities is having a negative impact on the net asset value of each of these vehicles' portfolios. These rating actions are the result of our review of various factors.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWSWUQTVsLgHxhilpuHQJhuV2VS

 

Four major U.S. banks said they have each borrowed $500 million from the Federal Reserve's discount window, becoming the first to say they have taken advantage of the central bank's latest attempt to add liquidity to the credit markets. Citigroup said it is "pleased to inject liquidity into the financial system during times of market stress."  Minutes later, J.P. Morgan Chase, Bank of America and Wachovia issued a joint press release saying they also borrowed $500 million each. The trio said "the companies believe it is important at this time to take a leadership role in demonstrating the potential value of the Fed's primary credit facility and to encourage its use by other financial institutions."
For more information, see: http://online.wsj.com/article/SB118779988225905435.html?mod=djemalert

 

Finding Alpha at Harvard
Endowment reports a 23 percent return for the year. Read More

 

New research explores whether 130/30 is actually “optimal”: Citigroup’s rocket scientists examine the “X” in 1X0/X0 in this two-part posting. (part two available here)

 

 

When the Fed announced a 50bp cut in the discount rate last week and also made a point of announcing an extension of the maturity of discount window loans to 30 days, our first reaction was to ask: Great, but what about next week? The troubles affecting the US markets are about solvency, not mere liquidity.

Full Story...

GLOBAL – North American institutional investors have regained their appetite for risk – in contrast to European investors, who consolidated the pullback they began last month, according to new data from State Street Global Markets.

 

US - The Louisiana State Employees’ Retirement System (LASERS) produced a 19.2% return for the fiscal year ending June 2007 taking its assets to US$9.1bn.

 

US – Many hedge funds have been able to generate profits as a result of the decline in the sub-prime mortgages space, according to Hennessee Group LLC, an adviser to hedge fund investors.

 

Credit Markets
(Steven Pearlstein, washingtonpost.com)

 

Cargill warns of risks from eco-fuel drive

Cargill, the agribusiness group, has called for any new US renewable fuel mandates to have an 'escape mechanism' to prevent soaring demand for crops from distorting food supplies

 

Wall Street Bonuses Threatened for First Time in Five Years
Bloomberg - Wednesday August 22, 08:45 BST

 

'How I Became a Quant'
Wall Street Journal Interactive - Wednesday August 22, 08:13 BST

 

Tuesday , 21 Aug 2007
The uranium spot price is down $46/pound in eight weeks; uranium mining and exploration stocks are down by some 52%.

 

Top JPMorgan banker predicts end to 'cov-lite' lending
Banks financing Asia's nascent leveraged buyout market can no longer be expected to fund deals with easy credit terms, a leading banker in the region signalled on Tuesday.  (Financial Times)
http://mail2.efnmail.co.uk/r/312651/MTk4MTI1OjE0ODc4/

 

IMF warns of risks to global growth
Turmoil in the financial markets will affect growth worldwide, John Lipsky, the number two official at the International Monetary Fund, said on Tuesday.  (Financial Times)
http://mail2.efnmail.co.uk/r/312658/MTk4MTI1OjE0ODc4/

 

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Yield Curve Corner

 

Bernanke Must Avoid Greenspan's Asia Bubble Mess: William Pesek
Bloomberg - USA
Will Ben Bernanke's? It's an open question following the Fed's Aug. 17 move to cut the discount rate -- which it charges banks -- by 0.5 percentage point to ...
See all stories on this topic

 

Bernanke, Paulson, Senate banking head to discuss market ...
CNNMoney.com - USA
SINGAPORE, Aug. 21, 2007 (Thomson Financial delivered by Newstex) -- The head of the US Senate Banking Committee, Christopher Dodd, is to hold a meeting in ...
See all stories on this topic

 

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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:

 

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Iranian Situation

 

Lawyer: Scholar still faces Iran charges
USA Today Wed, 22 Aug 2007 9:28 AM PDT
An Iranian-American scholar recently released from a notorious prison in Iran still faces charges she endangered the country's national security and has no passport with which to travel abroad, her lawyer said Wednesday.

 

IRAN:  Iran denied reports that it dropped leaflets in northeastern
Iraq on Aug. 20 warning villagers to evacuate before an Iranian
offensive on Kurdish rebels there, Reuters reported, citing an
Iranian government spokesman. The spokesman said the leaflets,
which were marked "The Islamic Republic of Iran" across the top and
bottom, were evidence of psychological warfare and propaganda, and
questioned whether they even existed. He did not say who might be
responsible for the leaflets.

 

IRAN:  The group of 21 Iranian hostages kidnapped Aug. 19 and
released during a military operation in Pakistan on Aug. 20 was
handed over to the Iranian Consulate in Quetta city Aug. 20, the
governor of Sistan-Balochistan told Islamic Republic News Agency.

 

Iraq: An Iranian Offensive in the North?

 

Iraq: Tactical Barriers to an Iranian Incursion
http://www.stratfor.com/products/premium/read_article.php?id=294326

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Opalesque’s Corner

 

- Sentinel can pay $312m to clients, judge says,  SEC publishes comprehensive Sentinel documentation,  SEC accuses Sentinel of using market turmoil to hide fraud
- Hennessee Report: Many hedge funds were expecting subprime events and were able to profit
from decline
- GLG down as largest strategy falls hardest, Atticus Capital said to lose 8% first 10 days in August, Experts debate what went wrong with quants,  Funds of hedge funds start to show impact of sub-prime trading
- Algorithmic Trading 2.0: Traders design algorithms that prey on other algorithms, or hide their presence from other algorithms behind flurry of order messages never meant to be executed
- Foreclosure filings up 93% this year, Detroit leads with 1 filing for 97 households,  Wilbur Ross plans push into subprime
- Opalesque Exclusive: Societe Generale FoF a winner with 11.78% YTD,  John W. Henry says fund up 15% in August
- Opalesque Exclusive: Asean Small Cap Fund `excited` on coming market bounce-back
- Axiom`s Syed says commodity funds trounce falling stock markets,  The stark differences between DJ-AIG and GSCI commodity indexes
- Opalesque Exclusive: Simran Capital says `significantly discounted` debt means opportunity, fund inflows highest since inception
- Driven by emerging markets, Harvard endowment reports 23% gain, Sowood losses offset, Colorado State University loses $5m in Sowood, Consultant: `Everyone`s going to get hurt a little bit`,  AP7 following subprime losses: Our strategy remains the same
- Pensions to determine what to do with hedge funds, `opportunity to test` portfolios, NY State comptroller not shy about investing in hedge funds, seeks opportunities when markets are down
- GBP suffers on subprime concerns in UK,  Rouble fall forces central bank to inject $3.4bn, FX volatility threatens carry trade, Japanese `retail effect` wanes
- F&C manager departs to set up hedge fund
- RAB`s Richards sees inflation risk, higher interest rates
- Refco trusts seek $2bln banks, auditors, `conspiracy went on for seven years`
- NASDAQ`s LSE stumble makes OMX victory crucial, Swedish regulator to make key OMX ruling, Investor AB to accept Nasdaq offer for OMX, Nymex says it has held merger talks, Banks name traders for Turquoise board
- Swedish hedge funds largely unscathed by subprime crisis
- Third Avenue`s Wadhwaney sees `great value` in Japanese stocks
- Activist News: Fortis says it has no problems financing ABN Amro bid
- News Briefs:  Hedge fund manager too busy to retrieve $160000 Maserati from pound, almost loses car, 5% decline: Wall Street bonuses threatened for first time in five years, Piper Jaffray appoints Lois Quam to lead Alternative Energy and Health Care initiatives, Paladyne opens clients operations center in New Jersey
- ...And finally: Spanish biologists catch shark who just wouldn`t stop pestering popular beach, however medical check-up finds rather sad human impact on maritime life
- Logon: http://www.opalesque.com/main.php?act=archive

 

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Misc. Items of Interest

 

Stop Singlism!
8.21.07, 10:00 AM ET - Leslie Talbot
Discrimination against the unwed may be the last socially acceptable prejudice in America.

 

Perfect Places To Dine Solo
8.21.07, 10:00 AM ET - Lauren Sherman
These spots boast single-friendly features sure to please the palates of those on their own.

 

Ball for Bonds's 756th homer going to auction
August 21, 2007 10:36 PM ET
SAN FRANCISCO (Reuters) - The fan who caught Barry Bonds's
record-breaking home run ball earlier this month has decided
to let it go.
http://links.reuters.com/r/U2DRO/5XKHV/8TOMP/S1UGJ/HNNTP/GX/t?a1=nl_usmorningdigest

 

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Funnies, Facts, Quotes, etc….

 

manumit man-yuh-MIT, transitive verb:

To free from slavery or servitude.

 

2004:  The Scream (1893), a painting by Edvard Munch, was stolen from the Munch Museum in Oslo, Norway.

1978:  Rebel Sandinistas occupied the National Palace in Managua, Nicaragua, holding more than 1,000 hostages for two days, in opposition to the Somoza government.

1973:  U.S. President Richard M. Nixon named Henry Kissinger secretary of state.

1862:  French composer Claude Debussy, a seminal force in the music of the 20th century, was born in Saint-Germain-en-Laye.

1851:  The first America's Cup was won by the American yacht America in a race around the Isle of Wight.

1642:  The English Civil Wars, fought between the Royalists and the Parliamentarians, began when King Charles I formally raised the royal standard at Nottingham

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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.