Wednesday, 20 August 2014
Last updated 1 hour ago
Jul 29 2013 | 11:22am ET
Like most major hedge funds, the recently-indicted SAC Capital Advisors is at the center of a web of units and affiliates, some of which have also been charged with insider-trading.
In SAC's case, those affiliates include a reinsurance business that has not been accused of any wrongdoing. But the hedge fund's indictment last week could still be felt at Bermuda-based SAC re.
SAC launched the company last year with $500 million in initial capital, and quickly won a top rating from insurance ratings agency A.M. Best. But that company said last week that they were monitoring the situation at SAC and could cut that rating.
A lower rating could scare potential customers and counterparties away from SAC Re, which invests its premiums with the hedge fund, giving it a form of permanent capital not subject to the vagaries of investor redemptions, which have poured in at SAC as scrutiny of the firm has mounted in recent months. But SAC Re isn't completely immune from bad publicity at its namesake firm.
"Buyers of reinsurance from SAC Re will be on the phone with their brokers telling them to move out," insurance industry consultant Andrew Barile told Reuters.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note