Friday, August 17, 2007

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 Top Stories


Hedge fund founder tries to sell helicopter-report
Source: Reuters UK
A hedge fund manager whose fund ran into rough weather last month has put the firm's corporate helicopter on the sales block, the New York Post reported on Friday, citing a marketing brochure. More...

Goldman Backer Broad Says Hedge-Fund Woes Infect Art (Update1)
Source: Bloomberg
Billionaire Eli Broad, who'll help shore up Goldman Sachs Group Inc.'s Global Equity Opportunities Fund, said art prices will decline as a result of losses by hedge funds and other large contemporary art collectors. More...

Massachusetts lifts restrictions on hedge funds
Source: FinancialNews-US.com
Restrictions covering hedge fund investments by public pension systems in Massachusetts have been loosened, even as the state regulator voices concerns over the investment of public money in such assets following $80m (€59.5m) in losses from two big managers. More...

Sebi to register hedge funds as FIIs
Source: The Economic Times
When the dust raised by the subprime fiasco settles, hedge funds will have the option to trade directly in India. Capital market regulator Sebi has decided to allow hedge funds to register directly as foreign institutional investors (FIIs). More...


More of Today's Stories continued below...  or  Today's Stories unabridged on the web

  Term of the Day & Related News

Derivatives

A derivative is a financial contract whose payoffs over a period of time are derived from the performance of assets, interest rates, exchange rates, or indices. This performance can determine both the amount and the timing of the payoffs. These payoffs can be in cash, as well as be the delivery of the underlying asset. The indices can range from a stock market index or the consumer price index (CPI) to an index of weather conditions. More...
 
Related News:

ICICI corners 23% of derivatives mart
Source
: Business Standard
ICICI Bank has made inroads into the complex world of financial derivatives, which till not long ago was the exclusive domain of foreign banks.

In about three years, the bank says it has captured a 23 per cent market share in the derivative business, helped by its relationships with Indian companies which are growing their operations globally.
More...

Moody's, S&P Lose Credibility on CPDOs They Rated (Update1)
Source
: Bloomberg
Moody's Investors Service and Standard & Poor's, the arbiters of creditworthiness, are losing their credibility in the fastest growing part of the bond market.

The New York-based ratings firms last month gave a new breed of credit derivatives triple-A ratings, indicating they were as safe as U.S. Treasuries. Now, investors are being offered as little as 70 cents on the dollar for the constant proportion debt obligations, securities that use credit-default swaps to speculate that companies with investment-grade ratings will be able to repay their debt.  More...

  Scholarly Article & Related News

High-Yield ('Junk') Bonds As Investments and As Financial Tools
by William A. Klein
High-yield ("junk") bonds acquired a bad name when used in the late 1980s to finance takeover transactions that left target corporations with an excessive risk of insolvency. The tarnished reputation of these instruments is largely unde- served. High-yield bonds have proved useful, as an alterna- tive to bank and other forms of financing, for "emerging" firms...
More...

 
Related News:

High-yield bonds weaken as trading dries up
Source: Reuters
Demand for U.S. high-yield bonds dropped on Thursday and trading slowed, traders said, after Countrywide Financial Corp. (CFC.N: Quote, Profile, Research), the largest U.S. mortgage lender, said it was drawing an $11.5 billion credit facility to bolster liquidity.
More...

Delaware Investments Names Kevin P. Loome Head of High-Yield Investments
Source: CNNMoney.com
Delaware Investments today announced that Kevin P. Loome has joined the company's fixed income team as Senior Vice President, Senior Portfolio Manager, and Head of High-Yield Investments, effective immediately. In this role, Mr. Loome is responsible for portfolio construction and strategic asset allocation of all high yield assets.
More...

  Top Stories by Category
  Book of the Day & Related News

   
Financial Risk Management
by Steve L. Allen
Average Customer Review: 5.0 
out of 5 stars
Price: $51.30
 
Book Description
An invaluable resource for any professional seeking to understand modern risk management. It begins with basic concepts and builds carefully to the practical and theoretical ideas necessary for dealing with the complexities of the most sophisticated and relevant financial instruments today. CD-ROM included.

Related News:

Investors buy into debt to sidestep market's risk
Source: The Globe and Mail
Fear gripped the financial markets yesterday and the flight to the safety of U.S. and European government securities caused bond yields to plummet. It was a move all about liquidity and avoidance of risk.
More...

Market volatility 'bordering on the irrational'
Source
: The Herald Sun
RESERVE Bank of Australia Governor Glenn Stevens today said the recent volatility on global markets was "bordering on the irrational".

Speaking before a House of Representatives committee sitting on the Gold Coast, Mr Stevens said he was not overly concerned about the sub-prime crisis gripping the United States. More...

 

  Personal Interest


Elvis "tribute" hopefuls vie for title
Source: The Washington Post
The King is dead. Long live the King -- of Elvis tribute artists.

Fans have voted, celebrity judges will weigh in after a final round of performances on Friday night in Memphis, and for the first time Elvis Presley's estate will sanction the "ultimate Elvis tribute artist," its preferred term for an Elvis impersonator. More...

Clinton leaving Obama in the dust in latest state poll
Source: The San Francisco Chronicle
New York Sen. Hillary Rodham Clinton, bolstered by an aggressive campaign organization in California, has amassed a whopping 30-point lead over Illinois Sen. Barack Obama - and enjoys more support among likely voters in the state Democratic primary than all of her Democratic presidential rivals combined, a Field Poll released today shows. More...

 

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   Top Stories (Continued)


A primer: Hedge funds, private equity, venture capital
Source: USA Today
Q: Can you explain the difference between hedge funds and venture capital?

A: You've probably heard of many types of alternative investments, such as hedge funds, private-equity funds and venture capital funds. While all three are pools of money used to invest, they have very different objectives and target different opportunities.  More...

Australian hedge fund thrives amid subprime turmoil
Source: The International Herald Tribune
HFA Holdings, an Australian hedge fund manager with more than $3 billion invested, said Thursday that its funds had benefited from the turmoil in the U.S. subprime mortgage market. More...


Hedge funds threatened in world turmoil
Source: Telegraph.co.uk
The US markets plummeted for the sixth consecutive day as traders became increasingly rattled that the continuing global turmoil may be about to claim a large hedge fund as its latest victim. More...

How safe is India from hedge fund redemption pressure?
Source: Moneycontrol
 Neil Wilson, Managing Editor of hedgefundintelligence.com doesn't expect large scale redemptions, though, he said there are problems in some funds.

He however added, that unless investors face the need to remove money from markets like India, because of liquidity problems elsewhere, he does not see them removing money very quickly out of India. More...

Investors and Hedge Funds Shift Interest
Source: Yahoo! Finance
Combating the Drops in a Dropping Market Maybach Financial Group

It's official: The Toronto stock market surrendered the last of its gains for the year Thursday. More...

Iraq Gets Its First Hedge Fund
Source: Finextra.com
Some of you probably read that headline and thought it may be more useful if Iraq could build a few hedges around their gardens first as, in this war-torn region, it's hard to imagine a hedge fund being of much use. Nevertheless, with infrastructure that is hardly working and an embryonic government, we find that Iraq Fund Management launched on August 1 to coincide with the opening of the Iraqi Stock Exchange. More...

Journal hedge fund column misses the point
Source: BloggingStocks
Thursday's Wall Street Journal ran [subscription required] an interesting "Ahead of the Tape" column discussing the issues pertinent to multistrategy hedge funds. Although I certainly understand where Henny Sender is coming from in the piece, I believe the writer's article has several key problems. More...

Goldman Sachs acts to lure more investors to hedge fund
Source: The Los Angeles Times
Goldman Sachs Group Inc. waived fees to draw investors to its Global Equity Opportunities hedge fund after stock-market losses wiped out $1.4 billion of assets this month, according to a person with direct knowledge of the terms. 
More...


Today's Stories unabridged on the web
 

 
   Today's Humor
A fellow nurse at my hospital received a call from an anxious patient.

"I'm diabetic and I'm afraid I've had too much sugar today." the caller said.

"Are you light-headed?" my colleague asked.

"No," the caller answered, "I'm a brunette."
 

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