Archive: 08/28/2007
Main News
Credit Risk - Survey Says
Subprime and Credit Top Short-Term Threats to U.S. Economy
“Financial
market turmoil has shifted the focus away from terrorism and toward subprime
and other credit problems as the most important near-term threats to the U.S.
economy,” says Carl Tannenbaum, NABE President and Chief Economist, La Salle
Bank/ABN-AMRO. “However, these concerns appear to be somewhat transitory, as
the five-year outlook for housing remains positive.”
Residential
Mortgage-Backed Securities
195 Subprime RMBS NIMS Classes Downgraded; Surveillance And New Issue
Assumptions Revised
These rating actions affect a total of 85 U.S. subprime RMBS net interest
margin securities (NIMS) transactions. The 195 downgraded classes have a
current balance of $1.66 billion, which represents 30.51% of the approximately
$5.44 billion currently outstanding in U.S. NIMS backed by U.S. subprime
mortgage securities rated by Standard & Poor's from the beginning of
October 2005 through the end of December 2006. These NIMS rating actions follow
the rating actions on subprime RMBS taken on July 12, 2007.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWTSAQTVsLgHxhilpuHQJhuV2VT
Credit
Trends: U.S. Distressed Debt Monitor
The U.S. distress ratio experienced its largest monthly increase since February
2003. A rising distress ratio signals an increased need for capital and could
act as a precursor to more defaults if accompanied by a credit crunch. Given
recent market volatility, credit conditions have tightened noticeably,
resulting in increased spreads and an abrupt cessation of high-yield issuance.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWTSAQTVsLgHxhilpuHQJhuV2VY
Structured
Finance
The Fundamentals Of Structured Finance Ratings
Structured finance has become an increasingly important tool in today's
financial markets, with issuance levels growing at an extraordinary rate in the
past few years both in the U.S. and Europe, as well as in most markets in
Asia-Pacific. Its development has been accompanied by vocal debate from market
participants and commentators alike on the manner in which credit rating
agencies, including Standard & Poor's, evaluate the creditworthiness of
such securities.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWTSAQTVsLgHxhilpuHQJhuV2VSR
Carlyle
Rescues Its Mortgage Fund Again
Newly
public fund gets second $100 million loan. Read
More
Fed saw danger of credit
crunch
Economists
and investors believe the odds are rising that the Fed will lower its key
interest by at least one-quarter percentage point on or before Sept.
18.
... READ FULL STORY
>>>
Knight Capital may return
fund fees
If its
Deephaven Funds suffer losses during the second half of the year, the firm may refund
up to $68. 4 million in investment fees.
... READ FULL STORY
>>>
State
Street faces exposure to conduits: report
August 28, 2007 01:56 AM ET
NEW YORK (Reuters) - Institutional money manager State Street
Corp faces $22 billion exposure to asset-backed commercial
paper conduits, the off-balance sheet vehicles that have caused
problems for rivals in recent weeks, British newspaper The Times
reported.
http://links.reuters.com/r/Z59UA/8YQJV/MMDR2/2CVV0/7YVK7/N9/t?a1=nl_usbusinessearly
BNP Paribas Investment
Partners resumes NAV calculation for suspended funds
Tue, 28 Aug 2007, 06:32
HedgeWeek
BNP Paribas Investment Partners has announced that it is resuming calculation
of the net asset values of three funds whose suspension on August 6 was a
critical point in the meltdown of the US sub-prime mortgage sector and the
seizing-up of credit mechanisms in the first 10 days of the month.
Few withdrawal symptoms so
far
Mon, 27 Aug 2007, 10:24
Institutional Investor/Hedge Fund Daily
History doesn't seem to be repeating itself as far as hedge fund redemptions
are concerned, at least so far. True, it's not even two weeks since redemption
day Aug. 15, but there has been nary a report of any mass exodus by investors,
a situation that could hobble the mightiest of hedge funds. According to
Financial Times, "there has been nothing like the level of outflows that
accompanies market wobbles in 1998, 2005 and 2006." The reasons may lie in
the changing dynamics of the industry, says FT, as investors are cushioning
losses by allocating to a wide variety of hedge fund managers and strategies.
Hedge Fund Numbers in Japan Grow as Stocks Languish (Update1)
Bloomberg.com Tue, 28 Aug 2007 7:08 AM PDT
Aug. 28 (Bloomberg) -- Hiromichi Tsuyukubo ran the best- performing fund in
Japan at Mitsubishi UFJ Asset Management Co., an arm of the nation's biggest
lender. Then, after six years, he decided to join a hedge fund.
Another German Sub-Prime Hedge Fund Casualty,
Tax-News.com Tue, 28 Aug 2007 1:08 AM PDT
The US sub-prime loan crisis claimed a further European scalp earlier this week
when German bank Sachsen LB was rescued by another state-owned bank, Landesbank
Baden-Württemberg, which provided an immediate Euros 250m in liquidity, and
will acquire Sachsen for a consideration of up to Euros 600m, although the deal
may yet unwind if Sachsen uncovers further liabilities.
NOW GYM WALLOPS 'GRUNTER'
New York Post Tue, 28 Aug 2007 2:37 AM PDT
A Manhattan hedge-fund manager flung into the wall of an Upper East Side
Equinox club during spin class got a surprise phone call in the hospital from
the gym - canceling his membership. "He was in disbelief," said
Stuart Sugarman's lawyer, Samuel...
Paying
Off Plastic is on the Decline Moody's
reports that more credit card holders forgo payment. Read
More
Are Hedge Funds The New
Dot.coms?
TheStreet.com - Tuesday August 28, 08:16 BST
In Volatility, Redemption
for Manager
New York Times - United States
But it has been a boon to Convexity Capital Management, the giant hedge fund
that makes arcane trading bets that benefit from volatility. ...
See all stories on this
topic
New Orleans - Hurricane
Katrina - Housing - Insurance - Natural ... - 12:24pm
With
the cost of natural disasters far beyond the insurance industry’s ability to
pay, a new market has sprung up to spread the risk. ... In Nature’s Casino
... |
NY
State Pension continuing debacle
http://www.nypost.com/seven/08282007/news/regionalnews/hev_pals_biz_got_million.htm
NY
Post: NY State Pension continuing debacle
http://www.nypost.com/seven/08272007/news/regionalnews/pension_tink_has_another_link.htm
Cheyne
$20 Billion Program May Liquidate After Losses, S&P Says. By Darrell
Hassler. Aug. 28 (Bloomberg) -- A Cheyne Capital Management Ltd. commercial
... |
Liability matching loses
favour
UK
- Executives responsible for investing company final salary pension schemes
still favour return seeking assets over liability matching, according to a
Watson Wyatt report.
Partners Group releases
results
SWITZERLAND
– Partners Group, the Swiss-based alternative asset manager, has predicted a
positive outlook for the second half of this year after it released its
semi-annual results as of 30 June 2007.
Nordic
pension funds predict alternatives outsourcing
http://www.ipe.com/news/Nordic_pension_funds_predict_alternatives_outsourcing_25098.php
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)
Joe
Montana's Firm Says Fund of Hedge Funds Lost 12% in August. By Jenny
Strasburg. Aug. 23 (Bloomberg) -- HRJ Capital LLC, the investment firm whose
... |
NDR
Credit Conditions Index Shows Decline Likely To Continue
http://usmarket.seekingalpha.com/article/45177?source=i_email&u=13532
Gartman: Short stocks, long
gold
Dennis
Gartman of the Gartman Letter was interviewed at Bloomberg yesterday.
While making clear that he is not a "gold bug", he makes an
astonishingly simple case for why gold is a good investment.
Federal Reserve allows
Citigroup to elude key banking rule - Aug ...
Fed bends rules to help two big banks. If the Federal Reserve is
waiving a fundamental principle in banking regulation, the credit crunch must
still be ... |
Credit Turmoil Upends Asian
Hedge Funds - WSJ.com
find
out how RBS and WSJ.com can help you "Make it Happen". ... Credit
Turmoil Upends Asian Hedge Funds. By LAURA SANTINI in Berlin, ALISTAIR
MACDONALD in ... |
U.S.
Subprime Fears Shake Chinese Banks
<http://seekingalpha.com/article/45601?source=i_email&u=13532>
Bank profits may well
suffer, but credit crisis hardly leaves them ...
International Herald Tribune - France
Reserve levels reached lows at the end of 2006, according to a study by the
RiskMetrics Group, which specializes in financial services. ...
See all stories on this
topic
LTCM
Figure Starts New Hedge Venture
|
|
Long
Term Capital Management cofounder Robert Merton is launching a new hedge fund
firm.
| |
_________________________________________________________________________
Yield Curve Corner
_________________________________________________________________________
Natural Disaster Corner
http://www.sec.noaa.gov/Data/index.html
http://earthquake.usgs.gov/eqcenter/
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/FSHSusnw240_MO.jpg
Weather Risk - US Weather
Commentary
With
New England stations such as Boston MA [96°F] and Concord NH [97°F] soaring to
their hottest temperatures yet this Summer on August 25 coupled with 100°F+
Heat Indices from Florida to Maine, it further demonstrates that August is in
fact the new July, and we still need to keep our eyes pealed for some final
spikes of the Season.
_________________________________________________________________________
Iranian Situation
Bush warns Iran against meddling in Iraq
Reuters via Yahoo! News Tue, 28 Aug 2007 12:10 PM PDT
U.S. President George W. Bush on Tuesday accused Iran, like al Qaeda, of
fomenting instability in the Middle East, and said one way to counter Tehran's
ambitions was to win the Iraq war.
Iran dismisses attack
warning by 'inexperienced' Sarkozy
AFP via Yahoo! News Tue, 28 Aug 2007 8:09 AM PDT
President Mahmoud Ahmadinejad on Tuesday brushed off a warning by Nicolas
Sarkozy that Iran risked being bombed over its nuclear drive, saying his
"inexperienced" French counterpart did not know what he was talking
about.
IRAN:
Iranian President Mahmoud Ahmadinejad said his country is
ready to fill the power vacuum in Iraq. Addressing a press
conference in Tehran, Ahmadinejad said the United States' power
there is collapsing and that Iran will fill the resulting vacuum
"with the help of neighbors and regional friends like Saudi Arabia,
and with the help of the Iraqi nation."
_________________________________________________________________________
Opalesque’s Corner
-
Renaissance Technologies shrugs off concerns, said to consider selling minority
stake
- Sentinel moved $135m before collapse
- State Street finds `record` $22bln exposure to debt conduits, 17% of total
assets, Carlyle bails out its $20bn Dutch fund
- State Street institutional `enhanced cash` fund falls 42%, US hedge
fund losses seen adding up in August: Cantillon, SAC, Citadel, Lone Pine, SAC
Capital falls 6% while few hedge funds gain, Deephaven, Knight Capital fund
unit, may refund performance fees it it posts losses in H2
- Bear Stearns judge delays ruling on banning U.S suits, questioning whether
Cayman should be the principal liquidation site, UK investors may join Bear
suit
- Market turmoil a test for Citadel as two of three high-profile deals develop
complications, Beazer books may be cooked
- Standard & Poor`s on Ten Key Operational Risks for Hedge Funds
- Deutsche Bank`s John Dyment, global head of the hedge fund capital group,
joins Shumway hedge fund, Mark Melchiorre joins UBS O`Connor as head of
credit strategies
- Hennessee forms alliance with marketing expert Leland Hardy to expand
advisory services to domestic, international HNI and institutions
- Opalesque Exclusive: Buffett follower starts activist fund
- Opalesque Exclusive: Iraq fund rises as foreigners enter domestic market
- Swedish Väring Capital launches emerging market hedge fund
- Update: The hedge fund contagion chart `looks a little like the British
Airways route map`
- Research: Can analysis of firm financial data reliably identify future
underperformers?
- Selling 130/30 to CFOs just got a lot harder
- Temasek approaches Nasdaq to buy LSE stake, Germans may be offered NASDAQ LSE
stake, Nasdaq may sell LSE for alliance with Dubai, Dubai closer to OMX
win, Borse Dubai expresses interest in Karachi exchange
- Ethanol projects may falter as margins fall, financing slows, Korea to open carbon
exchange market by year`s end, Global warming has opened a $30bln market for
carbon trading, ETFs for clean energy fans
- Ship stocks set for 20% return as industry eludes subprime rout
- Man Group, the beaten hedge fund king: However a close look shows Man has a
more secure revenue stream and is less dependent on performance than many
investors may realize
- London`s Forsyth Partners loses Dubai licence over capital requirement
provision
- HK`s Qi Capital shut down
- Subprime impact in Asia: ripple or tsunami?
- Hedge funds grow in Japan as stocks languish, only limited impact of global
credit crunch, Japan`s overseas investments stable amid subprime chaos
- News Briefs: SEC names new market surveillance chief, Stéphane Grégoir
appointed director of EDHEC economics research centre
- Activist News: Dutch judge refuses hedge funds` request to block
Mittal-Arcelor steel merger, H&R Block dissident Breeden wins more
support
- ...And finally: NY dogs to take over swimming pools in raving pool party, `smaller
dogs used the kiddie pool, while larger dogs plunged in the main pool`
- Logon: http://www.opalesque.com/main.php?act=archive
_________________________________________________________________________
Misc. Items of Interest
Hedgehogs
join 'protection' list *
Hedgehogs and house sparrows are on an updated list of species and habitats
which need protection.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/sci/tech/6965681.stm
_____________________________________________________________________
Funnies, Facts, Quotes, etc….
pukka
PUHK-uh, adjective:
1.
Authentic; genuine.
2. Good of its kind; first-class.
1993: The spacecraft Galileo took pictures of the
asteroid Ida.
1952: Writer and teacher Rita Dove, poet laureate
of the United States (1993–95) and winner of the 1987 Pulitzer Prize for Thomas
and Beulah (1986), was born in Akron, Ohio.
1914: The first major engagement of the British and
German navies during World War I occurred at the Battle of Helgoland Bight.
1850: Richard Wagner's opera Lohengrin was
performed for the first time, at Weimar, Germany.
1793: The Siege of Toulon in the French
Revolutionary Wars began.
476: The fall of the Western Roman Empire was
completed as Emperor Romulus Augustulus was deposed by the German warrior
Odoacer.
_________________________________________________________________________
Conference, Courses, Books, Papers
Great
Research Sites:
http://www.allaboutalpha.com/blog/
Merrill
Lynch research Link to full report including important disclosures see example
http://rsch1.ml.com/9093/24013/ds/78763025.PDF
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
http://www.cogenthedge.com/home/inv_strategy.asp
_________________________________________________________________________
Regulatory Info
Commodity Futures Trading
Commission (CFTC)
Division of Enforcement: +1
866-FON-CFTC
http://www.cftc.gov/enf/enfform.htm
http://www.cftc.gov/enf/enfform.htm
Securities and Exchange
Commission (SEC)
http://www.sec.gov/complaint.shtml
http://www.sec.gov/complaint.shtml
Autorité des marchés
financiers (AMF)
Ombudsman's office: +33 (0)1
5345-6464
French:
http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=fr&Id_Tab=0
English:
http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=en&Id_Tab=0
http://www.cob.fr/affiche_page.asp?urldoc=mediateur.htm&lang=en&Id_Tab=0
Financial Services Authority
(FSA)
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
Financial Ombudsman Service:
0845 080 1800, outside the UK: +44 (0)20 7964 1000
complaint.info@financial-ombudsman.org.uk
http://www.fsa.gov.uk/consumer/01_WARNINGS/scams/mn_scams.html
Hong Kong Securities and
Futures Commission (SFC)
http://www.sfc.hk/sfc/html/EN/inutilbar/contact/contact.html
Investor Hotline:
852-2840-9333
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.
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