Archive - Feb 21, 2009
A Look At One Of The World's Largest Fund Of Funds - New York State
Submitted by Tyler Durden on 02/21/2009 20:42 -0500In the wake of the Madoff scandal, it is only a matter of time before the Fund of Funds industry disappears, as investor anger grows at the glaring failure of Fund of Funds' primary responsibility - due diligence. Fund of Funds are currently perceived as worthless middle men between hedge funds and investors, pocketing 1% management fees and 10% incentive fees for arguably doing no work whatsoever.
Negative Basis Trading Recommendations
Submitted by Tyler Durden on 02/21/2009 04:11 -0500We have discussed the nature of the negative basis phenomenon at length previously, and judging by recent observations in the cash and synthetic market, it is evident that it is only a matter of time before this spread collapses dramatically, resulting in huge windfalls for accounts who establish basis positions currently ahead of a significant convergence in spreads.
Negative Basis Trading Recommendations
Submitted by Tyler Durden on 02/21/2009 04:11 -0500We have discussed the nature of the negative basis phenomenon at length previously, and judging by recent observations in the cash and synthetic market, it is evident that it is only a matter of time before this spread collapses dramatically, resulting in huge windfalls for accounts who establish basis positions currently ahead of a significant convergence in spreads.
It Would Not Be A Friday Evening Without One More FDIC Bank Failure
Submitted by Tyler Durden on 02/21/2009 02:46 -0500Number 14 for the year, and the second one for Oregon in a week, is Silver Falls Bank in Silverton, Oregon. Citizens Bank of Corvallis, Oregon will assume all the deposits of Silver Falls. The bank most recently had total assets of $131 million and total deposits of $116 million. The FDIC cost from this failure will be $50 million. The FDIC has graciously provided a phone number where investors should call before they proceed with the ritualistic Saturday morning run on the bank (1-800-760-3639).
More on Aleris' Dramatic DIP Drop
Submitted by Tyler Durden on 02/21/2009 02:44 -0500We wrote yesterday about some technical considerations which resulted in the 25% drop in Aleris' DIP trading price in the secondary market post break. Debtwire picks up the theme today, and discloses some other pretty ghastly information that was previously not widely known.


