Wednesday, 22 October 2014
Last updated 9 hours ago
Jun 21 2007 | 1:03pm ET
Merrill Lynch yesterday reportedly sold off securities from Bear Stearns’ High Grade Structured Credit Strategies hedge funds in the broader markets and plans to start selling derivatives today.
Merrill Lynch did not sell all of the estimated $850 million of securities it put up for sale but sold enough assets to cover its positions, Reuters reports. Other lenders including JPMorgan Chase & Co., Bank of America Corp. and Goldman Sachs Group are reportedly in the process of unwinding their positions in the hedge funds instead of auctioning off the assets.
Bear’s hedge funds, which once managed some $20 billion in assets, have lost billions in securities backed by subprime mortgages. Over the last several weeks, the funds have sold off some $4 billion in mortgage-backed bonds to meet margin calls and investor redemption demands.
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 ...