GM CDS settlement auction will happen in around a month; Ex-Deutsche Bank trader who lost over $1B last year said to be starting up hedge fund with $160M; The dangers of niche ETFs

• GM CDS settlemt time!
• Boaz Weinstein is back
• Are nich ETFs dangerous?

GM Filing Will Trigger Settlement Of $3 Bln In CDS Deals - Wall Street Journal

The expected bankruptcy filing by General Motors Corp. (GM) will trigger the settlement of around $3 billion in credit-default swaps written against the auto maker. 

The filing is expected Monday, with the resolution committee of the International Swaps and Derivatives Association, which groups the leading credit derivative dealer banks, deciding on a settlement plan that will likely involve an auction in around a month. 

The Depositary Trust & Clearing Corp. reported a net notional $2.3 billion in credit protection contracts outstanding on GM as of May 22, involving 4,820 contracts. Another $776 million in protection was held against indexes that included GM.....

Boaz Weinstein Said to Raise $160 Million for Saba Hedge Fund - Bloomberg

Boaz Weinstein, the bond trader who lost more than $1 billion last year at Deutsche Bank AG, has raised about $160 million since the end of April for his new hedge fund, according to two people familiar with the matter. 

Saba Capital Management LP, based in New York, plans to start trading in August, said a third person with knowledge of the firm. The people asked not to be identified because the information is private.....

“One bad year of performance, especially when that year was 2008, shouldn’t preclude people from raising money, so long as they have a good pedigree and sound long-term track record,” said Peter Greene, a partner in New York at law firm Lowenstein Sandler PC, whose clients include hedge funds.....

Investors warned about niche ETFs - Financial Times

Industry analysts and consumer advocates are warning investors of the dangers of a class of exchange traded funds that is “exploding“ in popularity. 

Leveraged and inverse ETFs – which claim to generate two or three times the return of an underlying index or a multiple of the inverse of the index – have amassed $30bn (£19bn, €21bn) of assets in the past two years and now account for 40 per cent of the volume of US equity trading. 

But many of these ETFs spectacularly fail to provide the expected return if held for more than a very short period – typically more than a day for equity-based funds.....