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Top Stories |
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HSBC to offer hedge funds to HK clients
Source: Yahoo! News
HSBC, Europe's biggest bank, will soon begin recommending select
hedge funds as an alternative investment vehicle to its wealth
management clients in Hong Kong.
More...
Morgan Stanley in talks to buy former strategist's fund
Source:
eFinancialNews
Morgan Stanley Investment Management may be about to buy a stake
in its sixth hedge fund manager in a year, acquiring a share of
about 20% in Traxis Partners, a $1.5bn (€1.1bn) global macro
fund run by one of its former chief strategists.
More...
India-focused hedge funds fare better
Source: The Economic Times
Indian stocks have emerged as the most attractive bet for hedge
funds, the fall guys during the recent subprime crisis, with
returns better than that of the Sensex. According to a study of
over 7,000 hedge funds across the world, those focused on India
have emerged on top in the past five-and-a-half years.
More...
From Russia With Cash: Seeding a Hedge Fund
Source: The New York Times
Russian multimillionaire, well-connected energy magnate and
nascent hedge fund manager — smiles broadly in a Manhattan
restaurant as a lawyer, a lobbyist, an economist and a former
congressman praise him over shots of vodka and a lavish spread
of lamb, salmon and beef tenderloin.
More...
More of Today's
Stories continued below... or
Today's Stories unabridged on the
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Term of the Day & Related News |
Fixed-Income Arbitrage
Fixed income arbitrage
is an investment strategy generally associated with hedge funds,
which consists of the discovery and exploitation of
inefficiencies in the pricing of bonds, i.e. instruments from
either public or private issuers yielding a contractually fixed
stream of income. Most arbitrageurs who employ this strategy
trade globally.In pursuit of their goal of both steady returns
and low volatility, the arbitrageurs can focus upon interest
rate swaps, US non-US government bond arbitrage, see US Treasury
security, forward yield curves, and/or mortgage-backed
securities.The practice of fixed-income arbitrage in general has
been compared to that of running in front of a steam roller to
pick up nickels lying on the street. Some arbitrageurs end up
flattened.
More...
Related News:
Fixed-income space
buzzing with activities
Source:
Sify.com
When equities are so compelling, does it make sense to
talk much about debt funds? You may think that the
answer is obvious.
However, let us just tell you that the seemingly
lacklustre world of fixed-income funds is currently in a
flux, marked as it is by the arrival of plenty of new
products.
More...
New ETFs target muni
bonds
Source:
MarketWatch
The credit crunch hasn't stopped exchange-traded fund
providers from launching new fixed-income products,
including the first funds offering exposure to the
fragmented market for municipal bonds.
More... |
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Scholarly Article & Related News |
An Option-Theoretic
Prepayment Model for Mortgages and Mortgage-Backed
Securities
by
Andrew Kalotay, Deane Yang, & Frank J. Fabozzi
We introduce a new approach for modeling the prepayments of
a mortgage pool and show how it can be used to value
mortgage pools and agency mortgage-backed securities. We
describe the full spectrum of refinancing behavior using a
notion of refinancing efficiency. Our approach has two
distinguishing features: (1) our primary focus is on
understanding the market value of a mortgage, in contrast
with standard models that strive (often unsuccessfully) to
predict future cash flows, and (2) we use two separate yield
curves, one for discounting mortgage cash flows and the
other for MBS cash flows...
More...
Related News:
Crisis sparks CDO asset sales as contagion spreads
Source:
FinancialNews-US.com
Vehicles that invest in complex mortgage-backed
securities have started offloading billions of dollars
in assets after the value of their portfolios fell to
levels that triggered a liquidation clause.
Troubles with these vehicles, known as market value
collateralised debt obligations, which package together
bonds and divide them into different levels of risk, is
the latest sign of contagion from the US sub-prime
mortgages debacle.
More...
Macquarie to offer
mortgage-backed bonds in Australia
Source:
The International Herald Tribune
Macquarie Bank plans to sell the first mortgage-backed
bonds in Australia in two months, offering increased
returns to revive a market shut down by the U.S.
subprime mortgage rout.
Macquarie will offer 300 million Australian dollars, or
$258 million, of bonds backed by home loans to people
with good credit histories, two people with direct
knowledge of the deal said.
More... |
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Top Stories by Category |
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Book of the Day & Related News |
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High Yield Bonds
by Theodore Barnhill, Mark Shenkman, William Maxwell
Average Customer Review: 
Price: $43.50
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Book Description
HIGH-YIELD BONDS provides state-of-the-art
research, strategies, and tools alongside
the expert analysis of respected authorities
including Edward Altman of New York
University's Salomon Center, Lea Carty of
Moody's Investor Service, Sam DeRosa-Farag
of Donaldson, Lufkin & Jenrette, Martin
Fridson of Merrill Lynch & Company, Stuart
Gilson of Harvard University, Robert
Kricheff of CS First Boston, and Frank
Reilly of the University of Notre Dame to
help you truly understand today's high-yield
market. |
Hope for a thawing
bond pipeline
Source:
FinanceAsia.com
New bond issues announced after the US Fed's
surprisingly large rate cut last week have sparked hope
that Asia's G3 bond markets might soon emerge from the
duldrums.
More...
Junk Bonds: What
Now?
Source:
BusinessWeek
The dramatic half-point interest rate cut by the Federal
Reserve on Sept. 18 gave investors a boost, but the
turmoil in the global credit markets is not over. How
long will it last and how bad will it get? Martin
Fridson, a junk-bond veteran and stock market historian
who has had a courtside seat through several credit
booms and busts over the past quarter-century, says this
crunch has a long way to go. Fridson set up his own
shop, FridsonVision, in 2002 after a long stint at
Merrill Lynch (MER ) as director of global high-yield
strategy. Contributing economics editor Christopher
Farrell asked him what he thinks is in store for junk
bonds.
More...
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Personal Interest |
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Japan's Fukuda set
to become prime minister
Source:
MarketWatch
Yasuo Fukuda, a moderate on international affairs, won
the leadership of Japan's ruling Liberal Democratic
Party, positioning him to become the country's next
prime minister, according to media reports.
More...
Starbucks plans to
give away Free iTunes Downloads
Source:
The Money Times
Starbucks Coffee Co. on Monday announced that it will
soon provide its customers with more than 50 million
free digital songs to download from iTunes in a move
that will give a significant boost to their recent deal
with Apple Inc. to launch a new wireless iTunes music
service.
More...
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