Archive: 10/26/2007
Main News
Economy Shows New Signs Of Stress
Many of the nation's biggest companies have cut back their sales expectations in recent days and the financial system is showing signs of new stress, evidence that the U.S. economy is more threatened by the sharp downturn in housing than it appeared to be only a few weeks ago.
(By Neil Irwin and Tomoeh Murakami Tse, The Washington Post)
Many of the nation's biggest companies have cut back their sales expectations in recent days and the financial system is showing signs of new stress, evidence that the U.S. economy is more threatened by the sharp downturn in housing than it appeared to be only a few weeks ago.
(By Neil Irwin and Tomoeh Murakami Tse, The Washington Post)
by SA Editors
: Two million subprime foreclosures seen by 2009: report
By Robert Schroeder MarketWatch
10/25/2007 10:54:00 AM
By Robert Schroeder MarketWatch
10/25/2007 10:54:00 AM
Collateralized Debt Obligations
CDO Spotlight: Guidance On Providing Credit Estimates After Public Ratings Are Withdrawn
There may be circumstances when we are not able to provide a credit estimate when a public rating is withdrawn or suspended for six months from the date of withdrawal/suspension. This has particular implications for European CDO managers, who rely on credit estimates in lieu of public ratings to calculate portfolio scenario default rates. The reasons for ratings being withdrawn and the precise circumstances surrounding the withdrawal vary. We will decide whether to provide a credit estimate on request or six months after withdrawal or suspension on a case-by-case basis and at our sole discretion.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYTTCQTVsLgHxhilpuHQJhuV2VST
CDO Spotlight: Guidance On Providing Credit Estimates After Public Ratings Are Withdrawn
There may be circumstances when we are not able to provide a credit estimate when a public rating is withdrawn or suspended for six months from the date of withdrawal/suspension. This has particular implications for European CDO managers, who rely on credit estimates in lieu of public ratings to calculate portfolio scenario default rates. The reasons for ratings being withdrawn and the precise circumstances surrounding the withdrawal vary. We will decide whether to provide a credit estimate on request or six months after withdrawal or suspension on a case-by-case basis and at our sole discretion.
To learn more, click or copy and paste the URL below:
http://standardandpoors.rsys1.net/servlet/cc5?kHiQYTTCQTVsLgHxhilpuHQJhuV2VST
Professor Risk
Morgan Stanley takes 35% stake in Chinese fund manager
Morgan Stanley agreed to buy a 35% stake in China's Jutian Fund Management, giving the Wall Street bank access to the country's rapidly growing fund management sector. (The Wall Street Journal)
http://mail2.efnmail.co.uk/r/321133/MTk4MTI1OjE1NDY1/
Morgan Stanley agreed to buy a 35% stake in China's Jutian Fund Management, giving the Wall Street bank access to the country's rapidly growing fund management sector. (The Wall Street Journal)
http://mail2.efnmail.co.uk/r/321133/MTk4MTI1OjE1NDY1/
Credit crisis 'still poses risks' *
The UK remains vulnerable to further shocks from the credit crunch, the Bank of England warns.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/business/7060546.stm
The UK remains vulnerable to further shocks from the credit crunch, the Bank of England warns.
Full story:
http://news.bbc.co.uk/go/em/-/1/hi/business/7060546.stm
The pseudo-science hurting markets
Project Turquoise has persistently floundered
Oct 24 2007 04:02
The supposed much-needed competitor to Europe' stock exchanges has almost nothing to show for its efforts nearly a year after its emergence, while a rival makes headway Read more »
Oct 24 2007 04:02
The supposed much-needed competitor to Europe' stock exchanges has almost nothing to show for its efforts nearly a year after its emergence, while a rival makes headway Read more »
What is Treasury’s Role in Enterprise Risk Management?The Association for Financial professionals
Kraig Conrad, CTP - Dir. of Corp. Finance and Risk
Kraig Conrad, CTP - Dir. of Corp. Finance and Risk
Bank Report Explores Hedge Fund 'Myths'
Hedge Fund Net - New York,NY,USA
by Paula Schaap, Reporter , October 23, 2007 Many hedge fund firms don't deserve their public images as volatile, alpha-driven investment vehicles, ...
See all stories on this topic
Hedge Fund Net - New York,NY,USA
by Paula Schaap, Reporter , October 23, 2007 Many hedge fund firms don't deserve their public images as volatile, alpha-driven investment vehicles, ...
See all stories on this topic
US – State Street Global Advisors (SSgA) has appointed Thomas Kennelly to head up its US Liability-Driven Investing (LDI) team.
Hedge-Fund Deals Dry Up
Wall Street Journal - USA
In the past few years, many of Europe's biggest hedge-fund managers have sold stakes to new owners or gone public. But investment bankers looking for deals ...
See all stories on this topic
Wall Street Journal - USA
In the past few years, many of Europe's biggest hedge-fund managers have sold stakes to new owners or gone public. But investment bankers looking for deals ...
See all stories on this topic
Rangel Seeks $48 Billion Hedge Fund, Buyout Firm Tax
Source: Yahoo! News
House Ways and Means Committee Chairman Charles Rangel said he will propose a $48 billion tax increase on executives of hedge funds and private-equity firms to help pay for curbing another tax this year. More... <http://www.hedgefund-index.com/newstoday.asp>
Source: Yahoo! News
House Ways and Means Committee Chairman Charles Rangel said he will propose a $48 billion tax increase on executives of hedge funds and private-equity firms to help pay for curbing another tax this year. More... <http://www.hedgefund-index.com/newstoday.asp>
Diversification and Volatility: What's New?
Source: SeekingAlpha
The last few months have been a roller coaster if you look at the markets through the prism of return. But what's the view if we survey the investment landscape via volatility and correlation? Has the world really changed all that much by these metrics? More... <http://www.hedgefund-index.com/newsdiversification.asp>
Source: SeekingAlpha
The last few months have been a roller coaster if you look at the markets through the prism of return. But what's the view if we survey the investment landscape via volatility and correlation? Has the world really changed all that much by these metrics? More... <http://www.hedgefund-index.com/newsdiversification.asp>
Wednesday , 24 Oct 2007
Demand surges by 37% in the second quarter as key economies are strong and price volatility eases.
Demand surges by 37% in the second quarter as key economies are strong and price volatility eases.
City's Pension Fund Soared in Latest Year
BY JILL GARDINER - Staff Reporter of the Sun
The pension fund that invests the retirement money for more than 320,000 current and former New York City employees saw an 18.27% net rate of return for the fiscal year ending June 30, but has seen sharply reduced growth since then. The New York...
BY JILL GARDINER - Staff Reporter of the Sun
The pension fund that invests the retirement money for more than 320,000 current and former New York City employees saw an 18.27% net rate of return for the fiscal year ending June 30, but has seen sharply reduced growth since then. The New York...
The Case of Those Mysterious Lehman Stories
Deal Book - Thursday October 25, 08:57 BST
Deal Book - Thursday October 25, 08:57 BST
Pioneer Helped Merrill Move Into CDOs
Wall Street Journal Interactive - Thursday October 25, 07:25 BST
Wall Street Journal Interactive - Thursday October 25, 07:25 BST
In this episode of HedgeWorld TV, Jack Gaine, president of the Managed Funds Association, a hedge fund industry group in the United States, talks about how hedge funds benefit the capital markets, why some in the United States see the U.K. ......
The Financial Accounting Standards Board (FASB) yesterday announced its plan for the late-2007 or early-2008 release of the FASB Accounting Standards Codification (Codification) for verification by constituents.
After penning my entry on the failure of Gaussian models, I have been on something of an intellectual world tour, reading the works of Sornette, Mandelbrot, Barabasi, and other "50 pound heads" as my friend calls them. And I have a better perspective on what all of this means for risk managers.
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Yield Curve Corner
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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/FSHScalifornia298_MO.jpg
Alert Name: avian flu
<http://www.cnn.com/2007/US/10/23/boderek.wildlifetraffickers/index.html> Bo Derek: We all must battle wildlife traffickers
10/24/07 09:21 AM, EDT
When I first visited the Galapagos Islands Marine Reserve, I expected to see an untouched paradise. While it is still beautiful to the naked eye, behind the scenes, all is not well. While there, I learned that the famous sharks of the Galapagos were under siege for their fins.
FULL STORY <http://www.cnn.com/2007/US/10/23/boderek.wildlifetraffickers/index.html>
<http://www.cnn.com/2007/US/10/23/boderek.wildlifetraffickers/index.html> Bo Derek: We all must battle wildlife traffickers
10/24/07 09:21 AM, EDT
When I first visited the Galapagos Islands Marine Reserve, I expected to see an untouched paradise. While it is still beautiful to the naked eye, behind the scenes, all is not well. While there, I learned that the famous sharks of the Galapagos were under siege for their fins.
FULL STORY <http://www.cnn.com/2007/US/10/23/boderek.wildlifetraffickers/index.html>
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Iranian Situation
U.S., IRAN: New U.S. sanctions aimed at punishing Iran for missile sales, nuclear activities and support of "terrorist organizations" will cut off Iranian entities from the U.S. financial system, Secretary of State Condoleezza Rice said. The sanctions target the Quds Force, Bank Melli and two other state-owned banks, and companies controlled by Iran's Revolutionary Guard Corps. U.S. companies are prohibited from doing business with the designated groups, and any assets the groups have in the United States will be frozen.
IRAN: Iran has commissioned Imad Mughniyye, Hezbollah official for foreign operations, to organize cells of Shiite operatives in Saudi Arabia, Kuwait, United Arab Emirates and Bahrain to operate against U.S. and pro-U.S. Arabs in the event of war against Iran, a Stratfor source in Lebanon said. Trainees from the Persian Gulf region reportedly have arrived in Lebanon and are conducting drills in the Bekaa Valley.
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Pentagon chief calls planning for Iran strike "routine"
Reuters via Yahoo! News Thu, 25 Oct 2007 12:06 PM PDT
U.S. Defense Secretary Robert Gates on Thursday characterized U.S. military planning for a strike on Iran as "routine."
Reuters via Yahoo! News Thu, 25 Oct 2007 12:06 PM PDT
U.S. Defense Secretary Robert Gates on Thursday characterized U.S. military planning for a strike on Iran as "routine."
A look at Iran's Revolutionary Guards
AP via Yahoo! News Thu, 25 Oct 2007 11:21 AM PDT
A look at Iran's Revolutionary Guards:
AP via Yahoo! News Thu, 25 Oct 2007 11:21 AM PDT
A look at Iran's Revolutionary Guards:
RUSSIA, IRAN: During Russian President Vladimir Putin's Oct. 16 visit to Tehran, Iranian Supreme Leader Ayatollah Ali Khamenei asked him to order Russian experts to help Iran figure out how Israel jammed Syrian radars prior to the Sept. 6 air raid, a Stratfor source in Hezbollah said. Iran wants to rectify the problem associated with the failure of Syrian radars because Iran uses similar equipment , the source added.
WSJ
U.S. Plans Unprecedented Sanctions for Iran
Secretary of State Condoleezza Rice and Treasury Secretary Henry Paulson plan to jointly announce an "unprecedented package of unilateral sanctions against Iran today, including the long-awaited designations of its Revolutionary Guard Corps as a proliferator of weapons of mass destruction and of the elite Quds Force as a supporter of terrorism," senior administration officials tell the Washington Post. The package of sanctions would mark "the first time that the United States has tried to isolate or punish another country's military" as well as the "broadest set of punitive measures imposed on Tehran since the 1979 takeover of the U.S. Embassy," the Post says. The New York Times notes that while the U.S. "has long labeled Iran as a state sponsor of terrorism, the decision to single out the Guard reflects increased frustration in the administration with the slow pace of diplomatic negotiations over Tehran's nuclear program." And it says, "both designations will put into play unilateral sanctions intended to impede the Revolutionary Guard and those who do business with it."
Secretary of State Condoleezza Rice and Treasury Secretary Henry Paulson plan to jointly announce an "unprecedented package of unilateral sanctions against Iran today, including the long-awaited designations of its Revolutionary Guard Corps as a proliferator of weapons of mass destruction and of the elite Quds Force as a supporter of terrorism," senior administration officials tell the Washington Post. The package of sanctions would mark "the first time that the United States has tried to isolate or punish another country's military" as well as the "broadest set of punitive measures imposed on Tehran since the 1979 takeover of the U.S. Embassy," the Post says. The New York Times notes that while the U.S. "has long labeled Iran as a state sponsor of terrorism, the decision to single out the Guard reflects increased frustration in the administration with the slow pace of diplomatic negotiations over Tehran's nuclear program." And it says, "both designations will put into play unilateral sanctions intended to impede the Revolutionary Guard and those who do business with it."
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Opalesque’s Corner
- Opalesque Exclusive: World Bank economist: No global slow down, reforms continue to drive markets, Colombia to shine, Central Bank of Brazil Governor sees country on sustainable grow path, `collecting stability dividends`, Narrowing of Brazil`s current account surplus not raising concerns, Are emerging markets overdone?
- Mourant founding partner starts new hedge fund admin firm
- Former ABN Amro trader to start shipping hedge fund, Former Marco Polo exec Lewis Wan opens fourth China-themed hedge fund, Pacific Alliance launches China real estate fund, New 130/30 products and new market neutral strategy announced in Legg Mason`s Q2 report
- Stark Investments to jointly launch Greater China multi-strategy fund with local fund house Bosera
- Brevan Howard raises extra GBP130m for listed hedge fund, Investors continue to support GLG, successful fundraising in spite of funds being flat
- A case for quants: Following erratic August markets, IAM reinforces that quantitative methods will lead the way
- Update: Absolute Investors Action Group urges AbCap to amend restructuring proposals, or risk having the proposal blocked at the extraordinary general meetings scheduled for October 27
- Update: Merrill`s mortgage-related losses did serious damage to the valuation of its rivals, The pioneer who helped Merrill move into CDOs, Comment: Can investment banks pick and choose how they price their assets?
- SIV linked to TPG-Axon, Axon Financial, to be liquidated, Cheyne`s SIV can declare insolvency, SIV resuscitation at Deloitte, Taiwan`s financial services firms expect to book losses from investments in SIVs, Credit squeeze hits RV Capital, Standard Chartered`s Whistlejacket SIV shrinks by $2 billion, Backlogs in credit derivative processing
- RAB founder, Northern Rock`s biggest shareholder, welcomes new code of conduct for hedge funds
- CFTC to unveil new regulation proposals, OTC trading to be affected, SEC` Cox expresses concern over rise of sovereign funds, SEC unveils new insider trading examination, Japan`s financial regulator signals shift to more transparent style
- Minimum-tax fix may cost U.S. buyout firms, hedge funds $48 billion, EU to cut fiscal barriers to cross-border share trading
- People: Matthew D. Glaser joins Turner Investment Partners as director of alternative strategies
- Aetos Capital `James Allwin succumbs to cancer
- Commodities: Investors are eyeing Canadian oil sands, production can be expanded significantly
- Exchanges / trading platforms: RV Capital is in default at Liffe, exchange says, Brazilian exchange BM&F, Chicago`s CME in partnership deal, Korean Exchange and CME announce partnership for KOSPI 200, Project Turquoise has persistently floundered
- Pensions: NYCERS pension fund soars, looks to invest in hedge funds
- EDHEC and EuroPerformance release the Alpha League Table 2007 for the UK, Graphic: Europe`s 20 largest hedge fund managers, as at June 30
- Merkel Cabinet approves hedge-fund disclosure bill
- Evolving with Luxembourg`s alternatives sector
- Buffett calls for caution over China stocks, Whitechurch reduces exposure to China funds amid signs of `mania`
- Subprime market still remains untapped in India
- Merrill Lynch to offer brokerage for SA hedge funds
- New books: `Hedge Hunters`: conversations with hedgies, `Nowhere`: photographs from around the world
- Activist News: Generali under pressure from Algebris Investments to start reforms, Activists of Clifford Street, Mystery bidder for UK` Southampton FC named
- News Briefs: Morgan Stanley names new global wealth chief, BofA`s investment-bank chief and 3,000 employees to leave, AllianceBernstein expects performance fees on HF services to be lower than last year, British fund firm Artemis`s profits rise 70%
- ...And finally: Bluetooth, German software allows classic music lovers command virtual orchestra
- Logon: http://www.opalesque.com/main.php?act=archive
- Mourant founding partner starts new hedge fund admin firm
- Former ABN Amro trader to start shipping hedge fund, Former Marco Polo exec Lewis Wan opens fourth China-themed hedge fund, Pacific Alliance launches China real estate fund, New 130/30 products and new market neutral strategy announced in Legg Mason`s Q2 report
- Stark Investments to jointly launch Greater China multi-strategy fund with local fund house Bosera
- Brevan Howard raises extra GBP130m for listed hedge fund, Investors continue to support GLG, successful fundraising in spite of funds being flat
- A case for quants: Following erratic August markets, IAM reinforces that quantitative methods will lead the way
- Update: Absolute Investors Action Group urges AbCap to amend restructuring proposals, or risk having the proposal blocked at the extraordinary general meetings scheduled for October 27
- Update: Merrill`s mortgage-related losses did serious damage to the valuation of its rivals, The pioneer who helped Merrill move into CDOs, Comment: Can investment banks pick and choose how they price their assets?
- SIV linked to TPG-Axon, Axon Financial, to be liquidated, Cheyne`s SIV can declare insolvency, SIV resuscitation at Deloitte, Taiwan`s financial services firms expect to book losses from investments in SIVs, Credit squeeze hits RV Capital, Standard Chartered`s Whistlejacket SIV shrinks by $2 billion, Backlogs in credit derivative processing
- RAB founder, Northern Rock`s biggest shareholder, welcomes new code of conduct for hedge funds
- CFTC to unveil new regulation proposals, OTC trading to be affected, SEC` Cox expresses concern over rise of sovereign funds, SEC unveils new insider trading examination, Japan`s financial regulator signals shift to more transparent style
- Minimum-tax fix may cost U.S. buyout firms, hedge funds $48 billion, EU to cut fiscal barriers to cross-border share trading
- People: Matthew D. Glaser joins Turner Investment Partners as director of alternative strategies
- Aetos Capital `James Allwin succumbs to cancer
- Commodities: Investors are eyeing Canadian oil sands, production can be expanded significantly
- Exchanges / trading platforms: RV Capital is in default at Liffe, exchange says, Brazilian exchange BM&F, Chicago`s CME in partnership deal, Korean Exchange and CME announce partnership for KOSPI 200, Project Turquoise has persistently floundered
- Pensions: NYCERS pension fund soars, looks to invest in hedge funds
- EDHEC and EuroPerformance release the Alpha League Table 2007 for the UK, Graphic: Europe`s 20 largest hedge fund managers, as at June 30
- Merkel Cabinet approves hedge-fund disclosure bill
- Evolving with Luxembourg`s alternatives sector
- Buffett calls for caution over China stocks, Whitechurch reduces exposure to China funds amid signs of `mania`
- Subprime market still remains untapped in India
- Merrill Lynch to offer brokerage for SA hedge funds
- New books: `Hedge Hunters`: conversations with hedgies, `Nowhere`: photographs from around the world
- Activist News: Generali under pressure from Algebris Investments to start reforms, Activists of Clifford Street, Mystery bidder for UK` Southampton FC named
- News Briefs: Morgan Stanley names new global wealth chief, BofA`s investment-bank chief and 3,000 employees to leave, AllianceBernstein expects performance fees on HF services to be lower than last year, British fund firm Artemis`s profits rise 70%
- ...And finally: Bluetooth, German software allows classic music lovers command virtual orchestra
- Logon: http://www.opalesque.com/main.php?act=archive
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Misc. Items of Interest
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Funnies, Facts, Quotes, etc….
stentorian sten-TOR-ee-uhn, adjective:
Extremely loud.
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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
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