Wednesday, 22 October 2014
Last updated 5 hours ago
Oct 7 2010 | 1:05pm ET
New York-based hedge fund QVT Financial is back in court, suing a Commerzbank unit over profit-dependent securities.
The hedge fund alleges that Eurohypo, Commerzbank’s property-lending unit, failed to pay $68 million due on the $1.2 billion in profit-dependent securities issued by two Eurohypo trusts. Eurohypo argues that it took a loss on the securities and therefore doesn’t have to pay.
Au contraire, retorts QVT. Commerzbank agreed to compensate the unit for losses, so it should pay up anyway.
“Having reaped the benefits associated with raising capital from U.S. investors, the defendants now are unwilling to live up to their obligations,” QVT alleged in its lawsuit, filed in Delaware state court.
QVT said, “as payments are due on participation securities issued by Eurohypo AG, Eurohypo is contractually required to make payments to the trusts and on the trust securities.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...