Archive: 10/22/2007
Main News
Twenty years to the day after the Black Monday market crash, the Dow industrials tumbled nearly 370 points, or 2.7%, amid worries about corporate earnings and the economy. It was the worst loss for the blue-chip index since Aug. 9. The Nasdaq and S&P 500 were each down more than 2.5%.
For more information, see: http://online.wsj.com/article/SB119279405399364771.html?mod=djemalert
For more information, see: http://online.wsj.com/article/SB119279405399364771.html?mod=djemalert
CHICAGO (HedgeWorld.com)—This week marks the 20th anniversary of the 1987 stock market crash, and despite the euphoria surrounding the Dow industrials re-visiting their pre-credit crisis summer peaks, it remains tempting to compare current market conditions to those that led to the October crash two decades ago. ......
The anatomy of a crash: What the market upheavals of 1987 say about today -- [at FT.com]
By John Authers FT.com
10/18/2007 1:30:22 PM
By John Authers FT.com
10/18/2007 1:30:22 PM
New Credit Storm Clouds Form
The first credit storm passed, but market barometers detect new hurricanes forming,
http://online.barrons.com/article/SB119265492134962430.html?mod=djemBF
The first credit storm passed, but market barometers detect new hurricanes forming,
http://online.barrons.com/article/SB119265492134962430.html?mod=djemBF
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S&P also affirmed its ratings on securities representing $531.6 billion original par value of US RMBS backed by first- lien subprime mortgage loans from ... www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-19-2007/0004685924&EDATE= - 2 hours ago - Similar pages |
Bear Stearns in probe over funds: report
October 19, 2007 12:56 AM ET
NEW YORK (Reuters) - Bear Stearns Cos is being investigated
by Massachusetts securities regulators over whether the bank
improperly traded with two in-house hedge funds that collapsed
last summer, the Wall Street Journal reported on Friday.
http://links.reuters.com/r/VAYF0/5XTOY/UIRTX/Y8DA7/59SU4/YT/t
October 19, 2007 12:56 AM ET
NEW YORK (Reuters) - Bear Stearns Cos is being investigated
by Massachusetts securities regulators over whether the bank
improperly traded with two in-house hedge funds that collapsed
last summer, the Wall Street Journal reported on Friday.
http://links.reuters.com/r/VAYF0/5XTOY/UIRTX/Y8DA7/59SU4/YT/t
CHICAGO (HedgeWorld.com)—Spectrum Global Fund Administration is closing its offices in India, citing issues such as rising costs and difficulty finding skilled staff. ......
The Philandering Fund Manager, Mistress and Missing Millions
ReportOnBusiness.com - Friday October 19, 07:58 BST
ReportOnBusiness.com - Friday October 19, 07:58 BST
SAC Socked With New Allegations
FINalternatives - Friday October 19, 08:57 BST
FINalternatives - Friday October 19, 08:57 BST
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Yield Curve Corner
The Bernanke
New York Sun - New York,NY,USA
Shortly after Mr. Bush tapped Ben Bernanke as the new chairman of the Federal Reserve Board, we ran, on December 5, 2005, an editorial called "The Bush ...
See all stories on this topic
New York Sun - New York,NY,USA
Shortly after Mr. Bush tapped Ben Bernanke as the new chairman of the Federal Reserve Board, we ran, on December 5, 2005, an editorial called "The Bush ...
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:
Extremely-Warm October continues for most of Nation, and remember Winter is a long way away...
Hurricane Fears Cost Homeowners Coverage
New York Times - United States
Liberty Mutual said the tie-in was a secondary issue, but in response to Mr. Dinallo’s warning, Liberty Mutual and the largest insurer in the state, ...
See all stories on this topic
New York Times - United States
Liberty Mutual said the tie-in was a secondary issue, but in response to Mr. Dinallo’s warning, Liberty Mutual and the largest insurer in the state, ...
See all stories on this topic
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Iranian Situation
No evidence Iran arming Taliban: Afghan foreign minister
AFP via Yahoo! News Fri, 19 Oct 2007 10:26 AM PDT
Afghan Foreign Minister Rangeen Dadfar Spanta said Friday there was no evidence that Iran was supplying weapons to Taliban militants waging a violent insurgency.
AFP via Yahoo! News Fri, 19 Oct 2007 10:26 AM PDT
Afghan Foreign Minister Rangeen Dadfar Spanta said Friday there was no evidence that Iran was supplying weapons to Taliban militants waging a violent insurgency.
Mullen: U.S. Has Resources To Attack Iran
CBS News Fri, 19 Oct 2007 8:00 AM PDT
The new chairman of the Joint Chiefs of Staff says that while military action against Iran is a last resort, the U.S. has the resources to mount an attack if one is ordered, despite the strains of wars in Iraq and Afghanistan.
CBS News Fri, 19 Oct 2007 8:00 AM PDT
The new chairman of the Joint Chiefs of Staff says that while military action against Iran is a last resort, the U.S. has the resources to mount an attack if one is ordered, despite the strains of wars in Iraq and Afghanistan.
Iran backing terror, says Blair
BBC News Fri, 19 Oct 2007 0:29 AM PDT
Tony Blair accuses Iran of backing terrorism and says the world faces a situation akin to the rise of fascism.
BBC News Fri, 19 Oct 2007 0:29 AM PDT
Tony Blair accuses Iran of backing terrorism and says the world faces a situation akin to the rise of fascism.
CASPIAN SUMMIT ENVISIONS CREATION OF REGIONAL INSTITUTIONS
At their summit in Tehran (see EDM, October 17), the presidents of the five Caspian countries’ agreed tentatively and in general terms to create an institutional framework for regional cooperation on economic, legal, and some security issues.
The presidents, who had not met since 2002 in this format, decided to hold regular five-country summits each year from now on. Azerbaijan will host the next summit in October 2008 in Baku. The riparian countries’ ministers of foreign affairs will meet regularly at six-month intervals from now on. These ministers, along with border guard and law-enforcement officials, are to draft regional arrangements on border security and maritime law enforcement. Those documents are to be submitted in time for the October summit in Baku. Meanwhile, Russia will host a meeting at the level of deputy prime ministers and economy ministers in Astrakhan in summer 2008, as part of preparations for setting up a (tentatively named) Caspian Sea Economic Cooperation Organization.
Russia has long evidenced an interest in creating a Caspian regional organization that it would dominate. At the Tehran summit, Iranian President Mahmoud Ahmadinejad proposed in Iran’s name the formation of a Caspian Sea organization. This would ostensibly “facilitate economic cooperation and trade, maintain security and peace in the sea, prevent military and naval competition, and deal with trans-border crime (IRNA, October 16). Putin endorsed Ahmadinejad’s proposal. However, the five countries have yet to harmonize their respective views on the actual functions of such an institution.
On legal issues, the presidents agreed that all shipping, fishing, and transportation in the Caspian Sea would be carried out exclusively under the flags of riparian countries. This decision formalizes the existing situation without changing it. The summit declaration calls for all legal issues to be resolved peacefully by the riparian states themselves --- a formulation apparently designed to forestall official assistance from other parties. However, the presidents avoided discussing the differences among riparian countries over the method of dividing the seabed and waters.
Only Kazakh President Nursultan Nazarbayev proposed a method: Dividing the water area into sovereign territorial sectors at least 12 nautical miles wide for each country, fishing zones 12-30 nautical miles beyond the sovereign zones, and an open zone in the center of the sea, with freedom for shipping and negotiated national quotas for fishing. Nazarbayev called for revising the existing quota system for sturgeon fishing, which is largely a legacy of pre-1991 allocations between the Soviet Union and Iran. Under the existing system, Iran is entitled to 45% and Russia to 27%, with the remaining 28% distributed among Kazakhstan, Azerbaijan, and Turkmenistan.
On the vexed issue of the naval balance in the Caspian Sea, Nazarbayev called for demilitarization as the optimal solution: “But I know that not all countries would agree to this,” he noted, alluding to Russia. As the next best option, Nazarbayev called for control of naval and coastal armaments and limiting all naval activities to coastal and border guard missions (IRNA, Interfax, Kazakhstan Today, October 16, 17). Russia’s naval forces (with coastal-based aviation) dwarf the capabilities of all the other Caspian countries combined.
The summit’s concluding declaration stipulates that the Caspian countries would “never use their armed forces for attacking one another” and, moreover, “under no circumstances would they allow their territories to be used for launching attacks or other military operations against other riparian countries.” This proviso seems designed with the possibility of U.S. strikes on Iran in mind.
During the summit in Tehran, Presidents Nazarbayev, Gurbanguly Berdimukhamedov of Turkmenistan, and Ahmadinejad signed an agreement to build a north-south railway connection between their countries. The connection would enable Kazakhstan and Turkmenistan to gain commercial access via Iran to the Persian Gulf --- a longstanding goal of the Central Asian countries. Turkmenistan looks to become the hub of this north-south line. Putin had endorsed the project when meeting with the Turkmen and Kazakh presidents in Turkmenistan in May of this year and confirmed Russia’s assent during the Tehran summit. Russia expects that the line, once constructed, would connect with the Russian railway system (IRNA, Altyn Asyr TV, Interfax, October 16).
On October 17 Azerbaijan’s President Ilham Aliyev and Iran’s First Vice-President Parviz Davudi attended the opening of the Shahtakhti-Poldasht bridge over the Araz River, connecting Azerbaijan’s Nakhichevan exclave with Iran. The two countries jointly financed and completed the construction of the 164-meter bridge in two years. At the ceremony, Aliyev also noted the joint construction of the gas pipeline link, which he and Ahmadinejad jointly inaugurated two years ago. The pipeline crosses the Araz riverbed from Iran, and it is vital to the Nakhichevan exclave (Trend, APA, West Azerbaijan TV, October 17).
At their summit in Tehran (see EDM, October 17), the presidents of the five Caspian countries’ agreed tentatively and in general terms to create an institutional framework for regional cooperation on economic, legal, and some security issues.
The presidents, who had not met since 2002 in this format, decided to hold regular five-country summits each year from now on. Azerbaijan will host the next summit in October 2008 in Baku. The riparian countries’ ministers of foreign affairs will meet regularly at six-month intervals from now on. These ministers, along with border guard and law-enforcement officials, are to draft regional arrangements on border security and maritime law enforcement. Those documents are to be submitted in time for the October summit in Baku. Meanwhile, Russia will host a meeting at the level of deputy prime ministers and economy ministers in Astrakhan in summer 2008, as part of preparations for setting up a (tentatively named) Caspian Sea Economic Cooperation Organization.
Russia has long evidenced an interest in creating a Caspian regional organization that it would dominate. At the Tehran summit, Iranian President Mahmoud Ahmadinejad proposed in Iran’s name the formation of a Caspian Sea organization. This would ostensibly “facilitate economic cooperation and trade, maintain security and peace in the sea, prevent military and naval competition, and deal with trans-border crime (IRNA, October 16). Putin endorsed Ahmadinejad’s proposal. However, the five countries have yet to harmonize their respective views on the actual functions of such an institution.
On legal issues, the presidents agreed that all shipping, fishing, and transportation in the Caspian Sea would be carried out exclusively under the flags of riparian countries. This decision formalizes the existing situation without changing it. The summit declaration calls for all legal issues to be resolved peacefully by the riparian states themselves --- a formulation apparently designed to forestall official assistance from other parties. However, the presidents avoided discussing the differences among riparian countries over the method of dividing the seabed and waters.
Only Kazakh President Nursultan Nazarbayev proposed a method: Dividing the water area into sovereign territorial sectors at least 12 nautical miles wide for each country, fishing zones 12-30 nautical miles beyond the sovereign zones, and an open zone in the center of the sea, with freedom for shipping and negotiated national quotas for fishing. Nazarbayev called for revising the existing quota system for sturgeon fishing, which is largely a legacy of pre-1991 allocations between the Soviet Union and Iran. Under the existing system, Iran is entitled to 45% and Russia to 27%, with the remaining 28% distributed among Kazakhstan, Azerbaijan, and Turkmenistan.
On the vexed issue of the naval balance in the Caspian Sea, Nazarbayev called for demilitarization as the optimal solution: “But I know that not all countries would agree to this,” he noted, alluding to Russia. As the next best option, Nazarbayev called for control of naval and coastal armaments and limiting all naval activities to coastal and border guard missions (IRNA, Interfax, Kazakhstan Today, October 16, 17). Russia’s naval forces (with coastal-based aviation) dwarf the capabilities of all the other Caspian countries combined.
The summit’s concluding declaration stipulates that the Caspian countries would “never use their armed forces for attacking one another” and, moreover, “under no circumstances would they allow their territories to be used for launching attacks or other military operations against other riparian countries.” This proviso seems designed with the possibility of U.S. strikes on Iran in mind.
During the summit in Tehran, Presidents Nazarbayev, Gurbanguly Berdimukhamedov of Turkmenistan, and Ahmadinejad signed an agreement to build a north-south railway connection between their countries. The connection would enable Kazakhstan and Turkmenistan to gain commercial access via Iran to the Persian Gulf --- a longstanding goal of the Central Asian countries. Turkmenistan looks to become the hub of this north-south line. Putin had endorsed the project when meeting with the Turkmen and Kazakh presidents in Turkmenistan in May of this year and confirmed Russia’s assent during the Tehran summit. Russia expects that the line, once constructed, would connect with the Russian railway system (IRNA, Altyn Asyr TV, Interfax, October 16).
On October 17 Azerbaijan’s President Ilham Aliyev and Iran’s First Vice-President Parviz Davudi attended the opening of the Shahtakhti-Poldasht bridge over the Araz River, connecting Azerbaijan’s Nakhichevan exclave with Iran. The two countries jointly financed and completed the construction of the 164-meter bridge in two years. At the ceremony, Aliyev also noted the joint construction of the gas pipeline link, which he and Ahmadinejad jointly inaugurated two years ago. The pipeline crosses the Araz riverbed from Iran, and it is vital to the Nakhichevan exclave (Trend, APA, West Azerbaijan TV, October 17).
--Vladimir Socor
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Opalesque’s Corner
- Editor's Note
- Opalesque Exclusive: Rocktoberfest 2007 - Why it`s just getting better from year to year
- New launches: Gemini`s two new gold hedge funds, RiverSource pumps out three new funds, CEC Capital to launch market neutral strategy, halts Ocean program
- SkyBridge Capital to seed U Capital Group, a global special situation value investment partnership
- Polar Capital AUM up 13.76 pct since March
- Merrill Lynch launches Merrill Middle Office Solution as outsourced, prime broker-neutral platform for middle- and back-office hedge fund services, GlobeOp can roll out one of its products to HF clients at Merrill Lynch
- Absolute Capital calls EGM on Oct 27 to restructure funds, Absolute Capital investors haggle with administrator over official September valuations, AbCap crisis has minimal effect on Argo funds
- Comment: Tougher climate for managers of quant funds due to market and structural changes, Permanent capital is back in fashion
- Survey: Technology to dominate spending for global hedge funds
- Offshore tax deferrals proposed ban for hedge managers - may impact many other investment managers, Comment: The crisis has yet again exposed shortcomings in the regulatory regime, Risk of lawlessness exists in hedge funds, no filters in the US
- Asset-backed sector continues to shrink, outstanding ABCP declined $11bn last week, European SIV funds are struggling, rescue from Super-fund could be too late
- BofA could scale back its investment banking division, BofA`s investment bank should have been able to steer clear of the hits, Citigroup has secured funding for its $80 million SIVs, Bank to give Sentinel trustee control of some assets
- Banks devise a range of sharia-compliant products as sharia-compliant funds increase in number
- Emerging market debt issuance hits all time high, Credit Suisse launches an EM bond index, Watson Wyatt urge funds to diversify indices for added value
- Credit Suisse/Tremont rebalances Investable Indices: Funds in and out
- Commodities: Paladin says uranium may rise to $110 a pound in first quarter, Traders say oil price rise driven by flood of speculative cash, correction on the way, Palm oil in Malaysia gets a big boost
- Report from Celent: carbon emission trading market to grow significantly, Norway set to join EU scheme for carbon emissions trading,Deutsche analysts: climate change investment is `megatrend`,Canadian investors warming to clean tech
- Regulators investigate two Bear Stearns hedge funds, A dozen mortgage firms probed for insider trading, Bank of Ireland cooperates in FoFs business probe
- Legal News: Feds bust up alleged hedge fund at Plainview photo shop, Wireless-phone-service provider sues Merrill over risky investment, Two US hedge funds are suing Eurotunnel
- GEM Global Equities Management launches London office as assets under
management more than double
- Northern Rock`s total borrowing now looks like GBP16 bil
- Alpha Strategic announces fund got Swiss regulatory approval
- The AMF releases report on regulations for FoFs in France
- Analysis: Indian stocks have risen too much, too fast, overseas inflows at record, but growth story still intact, 18 months to transform the market, Creating a modern Indian city: An interview with Delhi`s chief minister, Citigroup sees P-note measures deterrent to new hedge fund flows, India pledges greater access for hedge funds
- Update: Managed Funds Association invites Opalesque readers to first Tokyo Hedge Fund Symposium Nov. 13th, Tokyo Hedge Funds Club year-end networking party Dec. 5th
- Activists News: HSBC activist investor wins some backing,Lampe, Conway buys into Erinaceous
- News Briefs: Buffett says Berkshire Hathaway has sold last of PetroChina shares, Exchanges SWX and Virt-X slash trading costs, Tadawul set to begin new exchange system, ISDA expands into Asia, Spectrum closes shop in India, Credit-default swaps tied to Sri Lanka`s debt has began trading
- ...And finally: New on the menu: pork that can be cooked in a toaster in 3 minutes
- Logon: http://www.opalesque.com/main.php?act=archive
- Opalesque Exclusive: Rocktoberfest 2007 - Why it`s just getting better from year to year
- New launches: Gemini`s two new gold hedge funds, RiverSource pumps out three new funds, CEC Capital to launch market neutral strategy, halts Ocean program
- SkyBridge Capital to seed U Capital Group, a global special situation value investment partnership
- Polar Capital AUM up 13.76 pct since March
- Merrill Lynch launches Merrill Middle Office Solution as outsourced, prime broker-neutral platform for middle- and back-office hedge fund services, GlobeOp can roll out one of its products to HF clients at Merrill Lynch
- Absolute Capital calls EGM on Oct 27 to restructure funds, Absolute Capital investors haggle with administrator over official September valuations, AbCap crisis has minimal effect on Argo funds
- Comment: Tougher climate for managers of quant funds due to market and structural changes, Permanent capital is back in fashion
- Survey: Technology to dominate spending for global hedge funds
- Offshore tax deferrals proposed ban for hedge managers - may impact many other investment managers, Comment: The crisis has yet again exposed shortcomings in the regulatory regime, Risk of lawlessness exists in hedge funds, no filters in the US
- Asset-backed sector continues to shrink, outstanding ABCP declined $11bn last week, European SIV funds are struggling, rescue from Super-fund could be too late
- BofA could scale back its investment banking division, BofA`s investment bank should have been able to steer clear of the hits, Citigroup has secured funding for its $80 million SIVs, Bank to give Sentinel trustee control of some assets
- Banks devise a range of sharia-compliant products as sharia-compliant funds increase in number
- Emerging market debt issuance hits all time high, Credit Suisse launches an EM bond index, Watson Wyatt urge funds to diversify indices for added value
- Credit Suisse/Tremont rebalances Investable Indices: Funds in and out
- Commodities: Paladin says uranium may rise to $110 a pound in first quarter, Traders say oil price rise driven by flood of speculative cash, correction on the way, Palm oil in Malaysia gets a big boost
- Report from Celent: carbon emission trading market to grow significantly, Norway set to join EU scheme for carbon emissions trading,Deutsche analysts: climate change investment is `megatrend`,Canadian investors warming to clean tech
- Regulators investigate two Bear Stearns hedge funds, A dozen mortgage firms probed for insider trading, Bank of Ireland cooperates in FoFs business probe
- Legal News: Feds bust up alleged hedge fund at Plainview photo shop, Wireless-phone-service provider sues Merrill over risky investment, Two US hedge funds are suing Eurotunnel
- GEM Global Equities Management launches London office as assets under
management more than double
- Northern Rock`s total borrowing now looks like GBP16 bil
- Alpha Strategic announces fund got Swiss regulatory approval
- The AMF releases report on regulations for FoFs in France
- Analysis: Indian stocks have risen too much, too fast, overseas inflows at record, but growth story still intact, 18 months to transform the market, Creating a modern Indian city: An interview with Delhi`s chief minister, Citigroup sees P-note measures deterrent to new hedge fund flows, India pledges greater access for hedge funds
- Update: Managed Funds Association invites Opalesque readers to first Tokyo Hedge Fund Symposium Nov. 13th, Tokyo Hedge Funds Club year-end networking party Dec. 5th
- Activists News: HSBC activist investor wins some backing,Lampe, Conway buys into Erinaceous
- News Briefs: Buffett says Berkshire Hathaway has sold last of PetroChina shares, Exchanges SWX and Virt-X slash trading costs, Tadawul set to begin new exchange system, ISDA expands into Asia, Spectrum closes shop in India, Credit-default swaps tied to Sri Lanka`s debt has began trading
- ...And finally: New on the menu: pork that can be cooked in a toaster in 3 minutes
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
Friday Fun: Gossip Beats The Facts Any Day
Nature.com Blog - The Great Beyond - Friday October 19, 07:46 BST
Nature.com Blog - The Great Beyond - Friday October 19, 07:46 BST
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Funnies, Facts, Quotes, etc….
beholden ih-HOHL-duhn, adjective:
Obliged; bound in gratitude; indebted.
1998: The antitrust trial against Microsoft Corporation brought by the U.S. government opened in Washington, D.C.
1987: The Dow Jones Industrial Average plummeted nearly 23 percent, the largest one-day drop in the stock market's history.
1897: American industrialist George M. Pullman, inventor of the Pullman sleeping car used on railroads, died.
1864: Confederate soldiers based in Canada crossed into St. Albans, Vermont, and robbed three banks in order to agitate the Union during the American Civil War.
1812: Napoleon began his disastrous retreat from Russia.
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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)
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Regulatory Info
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
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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.
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