Another Aussie hedge fund takes subprime hit
Source: MarketWatch
Another Australian hedge fund has run into trouble as the impact from turmoil in U.S. subprime mortgages spreads across global credit markets.

Absolute Capital Ltd., part owned by Dutch financial-services giant ABN Amro, said on Wednesday that it has suspended investor redemptions from its Yield Strategies funds because liquidity has dried up in global structured credit markets. More...

Big fish shadow Obama's small fry
Source: The Chicago Tribune
Even as Democratic presidential candidate Barack Obama has promoted a large following of small-dollar contributors representing ordinary Americans, his campaign has built an old-school political fundraising machine that relies heavily on the wealthy and the powerful, including a Chicago-based hedge fund manager who earned $1.4 billion last year. More...

Corporate Bond Risk Soars on Hedge Fund Loss, Failed LBO Loans
Source: Bloomberg
The risk of owning corporate bonds soared after a hedge fund co-owned by ABN Amro Holding NV's Australian unit suspended withdrawals and investors shunned buyout debt in the U.S. and Europe, credit-default swaps show. More...

MBIA Net Drops After Loss on Bear Stearns Hedge Fund (Update2)
Source: Bloomberg
 MBIA Inc., the world's biggest bond insurer, reported a 4.3 percent decline in second-quarter profit after losing $9.6 million from an investment in a failed hedge funds run by Bear Stearns Cos. More...

Safety Net of Hedge Fund Regulation Encourages Perverse Risk-Taking
Source: SeekingAlpha
I have long been a champion of light-touch regulation for hedge funds, focusing on the burden of investors to do their homework with the proviso that information provided needs to be truthful, straight-forward and timely. I have also been a proponent of letting funds fail, as I scarcely hiccuped in the wake of the $9 billion Amaranth implosion. More...

The Scorecard: junk bonds, LBOs and hedge funds
Source: FT Alphaville
You’ve read the increasingly ubiquitous headlines on the drying up of easy credit in the past few weeks, and unless a deal is crashing down around your ears, you may not want to read another word about foundering debt issues and hedge fund collapses. More...

Who would lend to a hedge fund?: James Saft
Source: Reuters
The current brutal conditions in markets from mortgages to corporate loans should be giving banks good reason to think long and hard about their loans to hedge funds. More...

The Investment Banking Business: Money Management
Source: The Motley Fool
In an article last month, I gave an overview of the investment banking industry from the perspective of the actual business of investment banking. These days, though, the firms we typically refer to as investment banks do a whole heck of a lot more than just investment banking. More...

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