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How Much Has Angelo Moskov's QVT Lost In Dubai; Another Year, Another DB Prop Casualty?

Tyler Durden's picture




 

Is another Deutsche Bank (ex) prop group about to blow up on Dubai World? First, of course, we had Boaz Weinstein who lost so much money on the basis trade implosion last year, the DB accountants are still unsure how to quantify the P (not so much) & L, and now QVT Financial, originally also a prop trading group at DB until 2003, seems to have lost a boatload on the Dubai fiasco. The WSJ reports that QVT, headed by one Angelo Moskov, is "spearheading efforts to rally holders in bonds in Dubai World subsidiary Nakheel, including hedge funds and other money managers in New York and London... About 15 or 20 investors in bonds of Dubai World's real-estate subsidiary have come together in an effort to explore their options, after suffering huge losses."

As traditionally those most exposed within any given committee are presented the privilege to "head" such ad hoc initiatives, we are fairly certain that the QVT gentlemen have absorbed the lion's share of said "huge losses." And as the bonds have dropped from 110 to 40 in two days, and are trading below such liquidating names as Nortel, with other credits fully on the government's bailout/subsidiary payroll, this could easily be the single worst performing issue of 2009. Thus not one year seem to pass without what seemingly is yet another major Deutsche Bank legacy blow up.

To be fair, it is still not clear how many other funds could have been impacted by the Dubai Thanksgiving massacre, as well as what is the full exposure of the QVT-led group:

It is unclear what percentage of all bondholders the group represents, with at least some funds choosing not to join because they don't believe legal action will be successful. Some market specialists estimate that as many as half of bondholders were international buyers, with the rest owned by United Arab Emirates banks.

Among options bondholders are exploring is the possibility of seizing Dubai land that is being used to secure the bonds [good luck there]. But Julian Lim, a London-based bond analyst at Nomura, says there are question marks about the value of the land backing the bonds. In addition, it is unclear whether bondholders would even be able to seize the property given that local courts may consider those assets sovereign entities of Dubai, he added.

So while Goldman (as of yet) does not appear to have been impacted by the Persian Gulf debacle, it is poetic justice that the entity likely to suffer the greatest losses absent another Fed or UAE backstopped bailout of Dubai, will be a former Goldman employee: below is Mr. Moskov's professional career via Bloomberg:

Having worked at the triumvirate of Wall Street banks for several brief 2 year stints before opening QVT in 2003 as a Deutsche Bank prop trading spin off, Mr. Moskov, then 35, must have certainly learned from the best, not only in how to impress people courtesy of brief 2 year stints at several trading position, but that selling 3 year CDS can easily be the most profitable trade ever (sorry, CDS humor) if you know you won't have to be there to pick up the pieces when the shit hits the fan. We have inquired with insiders as to what QVT's total exposure in Nakheel is and will bring such information as we get it.

 

 

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Fri, 11/27/2009 - 16:23 | 144314 Daedal
Daedal's picture

I can see it now, next on his resume: CEO - Bank of America.

Fri, 11/27/2009 - 16:44 | 144322 Anonymous
Anonymous's picture

couldn't happen to a nicer bunch of money grubbers...

Fri, 11/27/2009 - 17:03 | 144332 David449420
David449420's picture

Can any one explain what happened to the markets since 1400 hrs? DJ just abruptly stops & Nasdaq & S&P are flatlined.

 

Fri, 11/27/2009 - 17:05 | 144335 jdun
jdun's picture

It is called Thanksgiving weekend otherwise known as half day of work.

Fri, 11/27/2009 - 17:09 | 144340 David449420
David449420's picture

Amusing. (I'm putting the tin foil hat away)  Have a nice weekend.

Fri, 11/27/2009 - 18:22 | 144425 Whatdoesitallmean
Whatdoesitallmean's picture

QVT is run by Dan Gold.... I am not sure why you seem to indicate that Angelo is the head.

Fri, 11/27/2009 - 18:35 | 144439 Rollerball
Sat, 11/28/2009 - 06:59 | 144707 Anonymous
Anonymous's picture

Hey, Angelo. If you are Googling your name & end up in Zero Hedge slumming it, "Hello" from your old Walla Walla friends. Don't let the bastards here bother you. They are mostly harmless. Mostly.

Sat, 11/28/2009 - 07:02 | 144708 Anonymous
Anonymous's picture

Hey, Angelo. If you are Googling your name & end up in Zero Hedge slumming it, "Hello" from your old Walla Walla friends. Don't let the bastards here bother you. They are mostly harmless. Mostly.

Sun, 11/29/2009 - 11:00 | 145333 Anonymous
Anonymous's picture

the title of this article should be 'How much has QVT lost' period... first Bader went, now this... and never mind the other funds they invest in...

Mon, 11/30/2009 - 14:58 | 146447 Anonymous
Anonymous's picture

I think the story is QVT was up 2% 3 montsh ago, then +17% currently. Of course Dan Gold is the owner. And with Dubai world, they could have wiped it out. If so, that would be 2 of 3 years effing up and Im sure the FoFs will pull out if thats the case. Maybe theyll do so anyways in anticipation of future eff ups.

Sat, 12/05/2009 - 17:12 | 154024 Anonymous
Anonymous's picture

The writing was on the wall 6 months ago when foreign workers ( archtects , engineers , construction specialists )were leaving , fired , and just left there cars at the airport with keys in . Funny how it takes this long for a reality check in the markets .

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