Main News

 

BANK'S BAD GAS
 By RODDY BOYD
The fallout from a disastrous series of natural gas bets continues to prove painful to a major Canadian bank with ties to a Westchester futures broker.  The Bank of Montreal said its losses from natural gas trades grew by another $91 million in the...
full story: http://www.nypost.com/seven/08292007/business/banks_bad_gas.htm

 

 

US and European stocks were hit by a new bout of nerves as economic reports and the minutes of the latest meeting of the US Federal Reserve forced investors to focus on the impact of the subprime mortgage crisis on the wider economy

 

French Hedge Fund Postpones Redemptions
AP via Yahoo! Finance Wed, 29 Aug 2007 3:18 PM PDT
Paris-based fund of hedge funds Stratus Fund Limited is postponing redemptions and halving its management fees due to losses incurred from the meltdown of Sentinel Management Group, a U.S. firm that manages short-term cash for commodity traders, such as hedge funds.

Bank Industry Risk Analysis: A Good Economy Props Up Polish Banks, Despite Political Volatility
The Polish economy is experiencing renewed growth, driven largely by private consumption and the restructuring efforts of recent years. While labor participation is still low in a European context, employment growth, and labor productivity is driven by the increasingly diversified economy and good export performances. Consequently, rising corporate and particularly household confidence is providing the banking sector with ample lending opportunities.
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWTWTQTVsLgHxhilpuHQJhuV2VW

 

34 Ratings On Eight U.S. Cash Flow, Hybrid CDOs Put On Watch Neg; $1.312B In Notes Affected
All eight affected transactions are CDOs of asset-backed securities collateralized by structured finance securities, including RMBS backed by U.S. first-lien subprime mortgages. Standard & Poor's placed these CDO ratings on CreditWatch in connection with an ongoing review of its rated CDO transactions with exposure to RMBS and other securities that have experienced negative rating actions.
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWTWTQTVsLgHxhilpuHQJhuV2VY

 

Structured Finance
Delinquencies Rising As Increasing Interest Rates Put Further Pressure on Affordability
The second-quarter total delinquency index for the U.K. nonconforming RMBS sector stands at 20.88%, up from 19.91% last quarter with 90+-day delinquencies at 9.92%. The July rise in the Bank of England base rate was the fifth since August 2006. This has put increasing pressure on floating-rate borrowers, and increased the magnitude of potential payment shock for fixed-rate borrowers that will revert to a much higher interest rate environment.

:http://standardandpoors.rsys1.net/servlet/cc5?kHiQWTWTQTVsLgHxhilpuHQJhuV2VB

 

China Sells $79 Billion Bonds to Set Up Reserves Fund (Update5). By Belinda Cao. Aug. 29 (Bloomberg) -- China sold 600 billion yuan ($79 billion) of bonds, ...
www.bloomberg.com/apps/news?pid=20601087&sid=a6zPJF.siDeE&refer=home - 11 hours ago -

 

Subprime inflicts new damage as banks seek cash
August 29, 2007 08:06 AM ET
LONDON (Reuters) - New evidence of damage wrought by the U.S.
mortgage sector surfaced in the United States and Europe on
Wednesday while banks demanded a record amount of cash at a
euro zone money market auction.
http://links.reuters.com/r/DFGA9/R809T/N5YFA/IQ9GF/6D7IQ/N9/t?a1=nl_usbusinessearly

 

NEW YORK (HedgeWorld.com)—It could have been one of the hedge fund management stories of the year. The Financial Times reported that Renaissance Technologies Corp. ......

 

STOCKHOLM, Sweden (HedgeWorld.com)—Reports that Brummer & Partners, the largest hedge fund provider in Scandinavia, may be up for sale were described as "complete nonsense" by Klaus Jäntti, chief executive and partner at the firm. ......

 

Reversal of the Revolving Door: Volatile Markets Provide Opportunities To Pick Up Talent
Institutional Investor - Wednesday August 29, 08:30 BST

 

Carlyle Group apologised to shareholders for a "lapse in communication" after extending a second $100m loan to a mortgage-backed securities fund it listed last month on Euronext Amsterdam

 

 

Globe and Mail - CanadaThere is a growing fear that the meltdown in the $1-trillion subprime mortgage market could grind the US economy to a halt, or even recession in the coming ... Globe and Mail - CanadaThere is a growing fear that the meltdown in the $1-trillion subprime mortgage market could grind the US economy to a halt, or even recession in the coming ...

Iraqi hedge fund escapes market turmoil
Tue, 28 Aug 2007, 12:11
HedgeCo.net
Iraqi hedge fund `The Babylon Fund´ announced today that they successfully managed to steer away from the general global financial meltdown seen lately. Babylon's winning streak continued during July (and further into August) with a rise of 3,8% in the Babylon Fund's NAV-price.

Quants drag down 130/30s too
Tue, 28 Aug 2007, 10:12
Institutional Investor/Hedge Fund Daily
Nothing like a market downturn to cool off a hot new product. Those 130/30 funds have been sizzling this year, but because most of them depend on quantitative strategies, they're suffering too, as their hedge fund quant cousins are, and, says Financial Week, that is expected to throw cold water on future growth, at least for the moment. Not all 130/30 funds were hit hard; those run the old-fashioned way - with real-live stock pickers - did okay.

America's Hackable Backbone
Forbes August 22, 2007
*************************
Supervisory Control and Data
Acquisition software, or SCADA, used
around the country to control
infrastructure like nuclear power
plants, water filtration and
distribution, trains and subways,
dams, manufacturing, and natural gas
and oil pipelines, are increasingly
connected to the Internet, leaving
large parts of America's critical
infrastructure...
http://www.kurzweilai.net/email/newsRedirect.html?newsID=7184&m=29780

 

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Yield Curve Corner

 

Bernanke Hits Jackson Hole
Briefing.com - Chicago,IL,USA
We're calling it Tropical Depression Ben, because there is a good chance that Fed Chairman Ben Bernanke, who will provide opening remarks at a Fed symposium ...
See all stories on this topic

 

New mortgage products could help, Bernanke says
MarketWatch - USA
Y., Bernanke repeated that the Fed is closely monitoring markets and stands ready to act if needed. The Fed issued a statement with almost identical wording ...

 

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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/TRCfitow241_GJ.jpg

 

Remember, we have about 24-36 hours remaining in our current "favorable phase" in the Atlantic before the next lull sets in, so we continue to monitor the still-disorganized Eastern Atlantic Wave.

Full Story...

 

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Iranian Situation

 

Iran summons diplomat, demands answers after U.S. arrests
CNN.com Wed, 29 Aug 2007 11:52 AM PDT
Iran summoned the Swiss diplomat who represents U.S. affairs to its Foreign Ministry on Wednesday to protest the detentions of eight Iranian delegates in Baghdad, according to Iranian state-run media.

 

 

Iran risks attack over atomic push, Sarkozy says
International Herald Tribune Wed, 29 Aug 2007 10:08 AM PDT
The fact that he raised the specter of the use of force is likely to be perceived by Iran as a warning.

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Opalesque’s Corner

 

- Jack Meyer`s Convexity up 12% through July, Capula  hedge fund up with fixed income arbitrage strategy
- Banque Syz lists hedge fund winners (up to +90%) and losers (up to -42%)
- CFM aims to recoup funds lost in Sentinel,  Fred Grede named trustee for Sentinel
- GLG takes out put options on its prime brokers, Merrill Lynch analyst downgrades Citigroup, Lehman Brothers, Bear Stearns
- Cheyne may liquidate commercial paper program on losses, Cheyne vehicle admits  breach of valuation conditions, triggering limits to invest or raise new debt, Cheyne well prepared for possible problems
- Cash pours into money market funds during mid-August as investors pare global allocations amid credit market uncertainty
- Renaissance nixes FT listing report - a second time,  Brummer not for sale, says CEO
- Hedge inflows $41 billion in second quarter
- New CapitalFusion fund to focus on deflated ABS and CDO assets
- UK schemes looks for specialist currency manager,  London Borough tenders GTAA mandates
- Danish pension to double its 2% forestry allocation,  will `definitely invest in other alternatives`
- Fitch affirms Max Capital`s ratings, reduced hedge fund holdings to 20% to  allocate more capital to underwriting opportunities
- Opalesque Commodities Special: Hard assets vs. stocks: Oil the big winner YTD, Commentary: The flight to gold: Demand in the past, Academic says you can gain commodities exposure without risk or expense of futures,  Harvesting Latin America`s agribusiness opportunity: The best local companies are far in advance of the rest, Few Dutch schemes see diversity in soft commodities
- Opalesque Exclusive: Cayman hedge fund admins leave investors waiting for redemptions
- Penson tagged with $15M CMO arbitration claim
- Barclays` CDO chief Cahill said missing after resignation, reviving Leeson memories as colleagues, family `frantically` try finding him
- Emerging market debt is the new safe haven, Emerging Markets will bounce back stronger than before, Mobius buys stocks, says global economy is `healthy`
- Eurex Repo creates first pan-European market for Collateralized Money Market transactions, Record repurchase volumes for Europe
- ASX, Euronext may be eyeing LSE stake, Nasdaq seeks probe into Borse Dubai`s bid for OMX,  Browsers, but no buyers, for an LSE stake, LSE shares jump on stake-sale speculation
- Partners Group releases results, net profits up 72%
- Swedish FSA plans to revoke C&M Funds` operating permit over capital depletion
- Nordic pension funds predict alternatives outsourcing
- New executive report: A Guide to Islamic Finance
- Hawaii says aloha to Asian hedge funds as jurisdiction of choice
- Merrill, Korea`s Woori in talks on private banking tie-up
- China urges companies to avoid `focusing on stock speculation`
- Cap intro overkill in Tokyo
- Japanese mafia targetis stock market and construction industry
- News Briefs:  Central Bank of Norway owns 5.1% of brokerage MF Global,  BGI working on new PE, other ETF products, Top fund managers made 22,300 times average wage, study says, Hedge Funds Care poker event raises $44K in Chicago, Luxembourg finance professionals work most hours
- ...And finally: London bar launches index-linked cocktails, adjusting alcohol levels according share price performance
- Logon: http://www.opalesque.com/main.php?act=archive

 

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Misc. Items of Interest

 

 

Lone woman seeks bald man
The next Karl Rove finds riches in niches
Full article

 

Nine years ago a team of McKinsey authors asserted that US companies
would struggle with a severe and worsening shortage of executive talent
for decades to come. What's more, most of them managed their current
talent so badly that they didn't so much as know who the top performers
were. Today, even China and India, with their millions upon millions of
university graduates, have difficulty producing enough of the
well-trained professionals and managers urgently needed to run critical
functions. This classic article from the archive offers specific
strategies for organizations willing to make these problems a top
priority in order to win "The war for talent" (1998 Number 3).
http://e.mckinseyquarterly.com/W7RT02A83044932CE4E1936C708810

 

Tuesday , 28 Aug 2007
South African reports of a diamond twice the size of the world's largest Cullinan stone are still shrouded in mystery.

 

Google Earth given celestial view
BBC News August 22, 2007
*************************
The Google Sky add-on to Google
Earth allows astronomers to glide
through images of more than one
million stars and 200 million
galaxies. Optional layers allow
users to explore images from the
Hubble Space Telescope as well as
animations of lunar...
http://www.kurzweilai.net/email/newsRedirect.html?newsID=7170&m=29780

 

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Funnies, Facts, Quotes, etc….

 

cajole kuh-JOHL, transitive:

To persuade with flattery, repeated appeals, or soothing words; to coax.

1877:  Brigham Young, American religious leader and second president of the Mormon church, died in Salt Lake City, Utah.

1862:  Union Major General John Pope opened the Second Battle of Bull Run (also called Second Manassas) with heavy but futile attacks on Confederate General Stonewall Jackson during the American Civil War.

1842:  China signed the Treaty of Nanjing, providing for the cession of Hong Kong to Great Britain, the opening of five treaty ports, the rights of British nationals accused of criminal acts in China to be tried in British courts, and a limitation on duties on imports and exports.

1756:  The Seven Years' War—a conflict that arose from the Austrian Habsburgs' attempt to win back Silesia, which had been taken from them by Frederick II of Prussia during the War of the Austrian Succession—began.

70:  Jerusalem fell to Roman forces—which included Josephus, a former general in the Jewish army who had defected to Rome—marking the collapse of the Jewish state

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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.