- Lehman Hardest Hit by Biggest Rise in Borrowing Cost Since 2000
- Einhorn awaits new distressed debt price falls
- Marshall Wace set to pursue financials
- European hedge fund launches fall to six-year low
- U.S. lawyers busy as hedge funds face scrutiny
Lehman Hardest Hit by Biggest Rise in Borrowing Cost Since 2000 - Bloomberg
Bondholders are demanding the highest interest rates for Wall Street debt since 2000, threatening the industry's business model of acquiring assets with borrowed money.
Lehman Brothers Holdings Inc. has seen borrowing costs for its five-year bonds rise to 7.7 percent, up from 5.2 percent six months ago, the biggest jump of the four largest U.S. securities firms, data compiled by Bloomberg show. The yield offered on Lehman's $1.5 billion of bonds maturing in January 2012 is 4.3 percentage points more than the yield for five-year U.S. Treasury notes, a premium almost double what it was in late January.....
Einhorn awaits new distressed debt price falls - Financial Times
David Einhorn, the hedge fund manager whose Greenlight Capital invests about $6bn, is eyeing investments in distressed debt but is waiting for prices to fall further.
“We’re not there yet,” Mr Einhorn said in a video interview with the Financial Times. “We have not yet begun purchasing distressed debt.”....
Marshall Wace set to pursue financials - Financial Times
Marshall Wace, the $15bn (£7.5bn) London hedge fund, has poached Morgan Stanley’s head of Asian proprietary trading to set up a financials fund as hedge funds seek bargains amid bombed-out bank shares.
Amit Rajpal, a former analyst in Hong Kong for the investment bank, will have his fund seeded with more than $200m from the hedge fund, according to two insiders....
European hedge fund launches fall to six-year low - Reuters
European hedge fund launches in the first half of 2008 fell to their lowest level since the last bear market, a survey showed on Monday, as the credit crisis hit investors' confidence.
The survey by EuroHedge, part of news and data group HedgeFund Intelligence, showed 106 funds were launched in the first half, which is 45 percent down on a year ago and the lowest level since the first half of 2002, when markets were still in a three-year bear market and 84 funds were launched.....
U.S. lawyers busy as hedge funds face scrutiny - Reuters via Forbes
It's turning into a busy summer for U.S. lawyers who advise hedge funds as the industry faces growing questions about potentially manipulative trading and regulators are knocking at fund managers' doors.
With the markets in turmoil, the loosely regulated sector is under increasing scrutiny. The U.S. Securities and Exchange Commission recently sent subpoenas to more than 50 firms regarding possibly abusive trading activity.....
Chris Cox is a brilliant regulator. Thank god he is defending those poor helpless investment banks against those vicious short-selling predators who are trying to destroy America, by, um, forcing the investment banks to use 30:1 leverage and invest in temporarily lucrative but ultimately unsound instruments. And didn't short-sellers also force those poor investment banks to pay excessive bonuses to incompetent executives, shovel bad debt into Level III capital, and burn the rest of their capital in dividends and share buybacks at inflated prices? Isn't it the fault of those hedge fund piranhas that America's top banks and investment banks have $600 billion of Level III capital on their books? Darn those short sellers. These threats to America can only be defeated by harrassing hedge funds.
Posted by: Anonymous | July 28, 2008 at 11:58 PM