Monday, 22 September 2014
Last updated 2 hours ago
Jul 27 2007 | 1:37pm ET
Just a month after scrambling to prevent lenders from seizing the assets of two troubled hedge funds, Bear Stearns is getting in on the action itself.
The New York-based investment bank seized securities from its High-Grade Structured Credit Fund—the fund it gave a $1.6 billion lifeline—to “protect against future price declines,” Bear spokesman Russell Sherman told Bloomberg News. The High-Grade Structured Credit Leverage Fund was the victim of an asset seizure—though not of the in-house variety—last month.
Bear said it expects to lose no money from its assumption of the $1.6 billion debt last month—recently reported to be down to $1.4 billion. But like the funds’ other investors, who learned two weeks ago that their investments had lost essentially all their value, Bear will probably be out its own $34 million investment. It will also probably not see $43 million in unsecured loans it made to the funds, and has decided to forego its management fee, costing it about $30 million.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.