Cheyne SIV To Default

Oct 18 2007 | 8:10am ET

A structured investment vehicle run by hedge fund Cheyne Capital Management will default on its debts, the fund’s receiver said. Cheyne Finance is experiencing an “insolvency event,” making it unable to pay its debts when they are due. The SIV, which saw its credit rating slip to junk earlier this month, will combined its debt regardless of maturity, meaning it won’t pay its commercial paper debt sooner than its longer-term notes.

SIVs, which invest in mortgage-backed securities, have been roughed-up by this summer’s subprime mortgage market debacle.

Receiver Deloitte & Touche said it is negotiating a refinancing of Cheyne Finance, and that an asset sale is neither imminent nor inevitable.

“We are very pleased with the progress being made to implement a financing or a whole-book solution of which we are in advanced negotiations,” Deloitte’s Neville Kahn said. “Today’s determination has not had a detrimental effect on these negotiations and we have no need for immediate liquidation of assets in the book.”


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Scene Last Night: Clinton, Schwarzman, Corzine, Neidich, Diamond

Nov 25 2014 | 5:52pm ET

Steve Schwarzman had a granddaughter yesterday morning. Last night he sat one table...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.