Archive: 09/04/2007
Main News
Don't
Blame The Rating Agencies
The fallout over subprime mortgages has provoked a rush to judgment, and some
are now blaming the credit rating agencies for the recent market turbulence.
These charges reflect both a misunderstanding of the work carried out by rating
agencies, and a misrepresentation of the overall credit performance of
securities backed by residential mortgages. The fundamental service provided by
a rating agency such as Standard &Poor's is to issue an independent opinion
on the creditworthiness of securities, which speaks to the likelihood that
investors will receive payments of interest and principal on time.
https://www.ratingsdirect.com/Apps/RD/controller/Article?id=599157&SctArtId=7426&from=CM&nsl_code=CMT
Structured
Investment Vehicles: Under Stormy Skies, An Updated Look At The Weather
On Aug. 15, 2007, Standard & Poor's updated the market about the current rating
status of the structured investment vehicles (SIVs) that we rate; we also
explained how specific aspects of SIVs operate. At this time, we are augmenting
that comment, in light of our Aug. 28 rating action on Cheyne Finance (A-/Watch
Neg/A-2).
To learn more, click or copy and paste the URL below:
(subscription required)
http://standardandpoors.rsys1.net/servlet/cc5?kHiQWTBAQUVsLgHxhilpuHQJhuV2VA
StockHouse.com : Hurricane
`Cat' Bonds Shelter Investors From ...
|
Hurricane
'Cat' Bonds Shelter Investors From Subprime Storm By Zachary R. Mider Aug. 31
(Bloomberg) -- Investors looking for safety from declines in the ... |
The
continuing crisis in US subprime mortgages could be worse for the market than
the 1998 Russian default, according to rating agency Standard & Poor's.
Credit analyst Nick Hill wrote that a "harsh but plausible stress
test" predicted 47% drops in investment banking and trading revenues for
the largest banks. "This is more severe than in 1998, reflecting in
particular potential mark-downs on leveraged finance exposures and structured
credit," he wrote. The losses would be "testing but manageable"
on the whole, but some firms could suffer significantly, and could be
downgraded if their risk management was judged inadequate. Hill added that the
firm considered an extended downturn unlikely.
Subprime crisis "worse
than 1998", says S&P
BARCLAYS
BLAMES TECHNICAL GLITCH FOR £1.6 BILLION EMERGENCY LOAN
UK bank Barclays says it was forced to borrow £1.6bn from the Bank of England
after a technical problem with its link to the Crest settlement system left it
unable to borrow in the inter-bank market to cover a short position in its
accounts.
More on this story: http://www.finextra.com/fullstory.asp?id=17384
Two
new studies reveal secret sauce used by activist hedge funds. 28 August 2007.
Two all-beef patties, special sauce, lettuce, cheese, pickles, onions ...
allaboutalpha.com/blog/2007/08/28/two-new-studies-reveal-secret-sauce-used-by-activist-hedge-funds/
- 35k - Cached - Similar pages - Note this
Risk of redemptions loom
over 2000 hedge funds
|
As
many as 2000 hedge funds could be vulnerable to redemptions as investors rush
to recover their assets, increasing the number of companies seeking ... |
Industry Risk - Hedge Funds
Are the Biggest Game in Town
Hedge
funds generated nearly 30 percent of U.S. fixed-income trading volume last year
among participants in the market’s most extensive study, double the 15 percent
they accounted for in the prior 12-month period.
Credit crunch seen easing
but funds continue to stumble
The first signs that the fall-out from the collapse of the US sub-prime
mortgage sector may be easing came this week, with BNP Paribas reopening three
funds after resolving asset valuation issues and the hard-pressed Carlyle
Capital fund hoping to restore its dividend in the fourth quarter.
UBS launches 130/30 strategy
fund aimed at private investors
UBS has launched a new fund based on an investment concept incorporating a
130/30 strategy, the UBS (Lux) Key Selection Sicav - US Equities 130/30 B, with
the aiming of extending the availability of 130/30 strategies from
institutional to private investors.
_________________________________________________________________________
Yield Curve Corner
Bernanke:
Help, Yes; Bailout, No 
Federal Reserve Chairman Ben S. Bernanke said the Fed is willing and eager to
inject liquidity into markets to keep the economy on track, but made clear it
will not bail out homeowners and others who made unwise investments. Read
More
Bernanke under pressure to
tip his hand
MarketWatch - USA
Those are the perils Federal Reserve Chairman Ben Bernanke faces during this
weekend's Fed retreat in the Grand Tetons: He could find himself in hot water
...
See all stories on this
topic
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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/TRCfitow243_GJ.jpg
Weather Risk – US Weather
Commentary
While
much attention has been given to ENSO status over the past 10 Years, it must be
reminded that weekly SSTA fluctuations are mere “climate noise”, and it is
rather the multi-month running mean of key ENSO monitoring regions which is of
oceanographic and meteorological significance.
_________________________________________________________________________
Iranian Situation
Iran may hire others to finish Russian nuclear plant: report
AFP via Yahoo! News Fri, 31 Aug 2007 9:00 AM PDT
Iran is considering alternative builders to finish its first nuclear power
plant amid disputes with Russia, which now heads the project, a Russian daily
quoted an Iranian official as saying Friday.
_________________________________________________________________________
Opalesque’s Corner
-
Bear Stearns judge rejects ban on hedge fund suits, says Cayman Islands
not the proper jurisdiction, Ruling sets precedent for how failed Cayman hedge
funds will be liquidated, Bear Stearns hedge funds given 30 days to
refile bankruptcy petition, then must face investors
- Basis says no trouble with 2nd fund (Pac-Rim Opportunity Fund )
- Law firm`s `hedge fund recovery team` says risk of redemptions loom over
2,000 hedge funds, How investors can prepare for `what`s coming`
- Moody`s: Major U.S. investment banks have sufficient liquidity to fund their
commitments, Standard & Poor`s President Corbet leaves amid subprime
fallout
- Investment banks set to cut 10-15% of staff, Subprime crisis set to burst
City bankers` bonus bubble, BNP: Don`t blame us for financial crisis, it was
just bad timing
- Moody`s president sees unprecedented illiquidity, defends Cheyne
- Listed vehicles suffer in the turmoil, Asia hedge funds` simplicity may
be saving grace, South African hedge funds weather subprime storm, down
just 0.5% in August, up 21% YoY
- Barclays says Cahill departure `orderly and not forced`, met with Cahill for
transition
- Absolute Capital Management`s co-founder Ewing departs, Watson Wyatt
adds hedge fund consultant, Bridge Advisors taps Robert C. Bernard to
head alternative investment consulting business
- Finnish fund edges towards alternatives limit, Pensions still favour
`return-seeking` assets
- Wilshire: Most 130/30 managers produce additional residual return on short
side
- Swiss Re says investors more interested in Cat bonds now
- Flood of new property hedge funds exploit weakened market
- Update: Commodity prices continue to skyrocket - how to benefit from irreversible
trend
- Sparx to launch three mutual funds targeted at U.S. investors
- Colorado invites to hedge fund roundtable on Industry Best Practices on
Presenting Your Performance
- Sentinel gets court OK to pay payroll, other expenses, but not to founders,
SEC settles with Connecticut hedge fund manager Scott Sacane in securities
fraud schemes, All charges dismissed in Quattrone case, former Credit
Suisse star banker free to return to Wall Street
- Opalesque Exclusive: Fortis says hurricane did not affect operations,
hurricane response program stood up exceptionally well
- India private equity not scared of global credit crunch, Blackstone with
`huge` deal pipeline
- Taiwan relaxes short-selling restrictions, allows shorting of Taiwan
Mid-Cap 100 stocks
- Activist News: Taiwan Cosmos Bank to sell stake to SAC Capital, SAC
Capital, GE to invest US$900m in Cosmos Bank, Cosmos was under threat of
Taiwan state control
- News Briefs: Reuters to donate all proceeds from 2007 Golf Day to SF Hedge
Funds Care, Dexia Asset Management and Investor Services revenues nicely up
- ...And finally: Cars smash up man's home for 10th time
- Logon: http://www.opalesque.com/main.php?act=archive
_________________________________________________________________________
Misc. Items of Interest
_____________________________________________________________________
Funnies, Facts, Quotes, etc….
egregious
ih-GREE-juhs, adjective:
Conspicuously
and outrageously bad or reprehensible.
1991: Uzbekistan and Kyrgyzstan declared
independence from the Soviet Union.
1980: Polish labour activist Lech Walesa and
Mieczyslaw Jagielski, Poland's first deputy premier, signed an agreement that
conceded to workers the right to organize freely and independently.
1966: The Harrier “jump-jet” fighter-bomber made
its first flight.
1895: The first American professional gridiron
football game was played in the township of Latrobe, Pennsylvania.
1850: King Kamehameha III officially declared
Honolulu a city and the capital of his kingdom.
1751: Robert Clive of Britain seized Arcot, India,
and then withstood a 53-day siege that began a few weeks later.
_________________________________________________________________________
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
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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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