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Post by unlawflcombatnt on Jul 31, 2007 20:40:27 GMT -6
Below are excerpts from another article on the decline of Bear Stearns. Bear Stearns halts redemptions on 3rd hedge fundTue Jul 31, 2007 9:45PM EDT By Tim McLaughlin " NEW YORK, July 31 (Reuters) - Bear Stearns Cos. Inc., recently embarrassed by the collapse of two hedge funds, said on Tuesday it has halted redemptions in a third hedge fund after jittery investors wanted to pull out their money.
Bear Stearns' (BSC.N: Quote, Profile, Research) $850 million Asset-Backed Securities Fund experienced declines in July, prompting some investors to seek redemption of their investments. The investment bank, however, believes the assets in the fund -- tied to Alt-A and prime mortgages -- are worth more than what current market conditions will allow.
The downturn at the third Bear Stearns hedge fund likely will jolt investors already jittery about the U.S. housing slump reaching deeper into the American economy. Shares of American Home Mortgage Investment Corp. (AHM.N: Quote, Profile, Research) plunged 90 percent on Tuesday after the lender said it might liquidate.
The news at Bear Stearns follows the spectacular flameout this week at Sowood Capital, a hedge fund that managed money for Harvard University and lost roughly half of its $3 billion in capital in less than a month.
Analysts say more hedge fund collapses could follow, especially at ones that don't have enough capital to ride out tumultuous mortgage and credit markets...." The full article can be found at Bear Stearns halts redemptions on 3rd hedge fund
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Post by unlawflcombatnt on Aug 1, 2007 3:35:36 GMT -6
Below are excerpts from another story on the 3rd Bear Stearns fund to stop redemptions. Bear Stearns Halts Redemptions on 3rd Hedge FundBy Yalman Onaran" July 31 (Bloomberg) -- Bear Stearns Cos., manager of two hedge funds that collapsed last month, halted redemptions from a third fund after a slump in credit markets prompted investors to demand their money back.
The Bear Stearns Asset-Backed Securities Fund had about $900 million invested in asset-backed securities, including mortgage bonds, spokesman Russell Sherman said today in a telephone interview. The fund was overwhelmed by redemption requests, Sherman said.
The fund's stumble is a setback for New York-based Bear Stearns and illustrates how the crisis in the subprime mortgage market has spread. The fund had less than 0.5 percent of its assets in securities linked to loans to subprime borrowers, Sherman said. The two funds that collapsed invested almost fully in subprime bonds. Losses have spread to banks, insurers and hedge funds in France and Australia, including one run by Macquarie Bank Ltd.
``This shows you don't necessarily have to be a subprime fund now to be having problems,'' said Bryan Whalen, a portfolio manager in Los Angeles at Metropolitan West Asset Management, which oversees more than $21 billion in fixed-income assets...." The full article can be found at Bear Stearns Halts Redemptions on Third Hedge Fund
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