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It's Not SUNE For Hedge Fund Hotels As The Liquidation Continues

Tyler Durden's picture




 

Yesterday, we highlighted what could well have been the catalyst for the collapse late in the session. SUNE has crashed in the last two days as the hedge fund hotel which boasts such guests as Greenlight, Third Point, Glenview, Lone Pine, Fir Tree, Steadfast, Omega, York, and Canyon,  sees mass liquidations, and judging by this morning's 6% plunge in the face of a notably higher broad market, it appears the margin-call driven liquidation may be continuing if not accelerating.


 

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Wed, 08/26/2015 - 09:48 | 6472587 EscapeKey
EscapeKey's picture

i thought all problems had been fixed again?

Wed, 08/26/2015 - 10:04 | 6472674 BandGap
BandGap's picture

I believe the word is out to sell in the face of strength. Someone is holding the door open so friends can leave.

Wed, 08/26/2015 - 09:50 | 6472600 Dr. Engali
Dr. Engali's picture

Yeah, we're going to end up with a few floating bodies before this is over with.

Wed, 08/26/2015 - 10:05 | 6472677 BandGap
BandGap's picture

I think we're seeing some floaters right about now.

Wed, 08/26/2015 - 09:50 | 6472603 curbyourrisk
curbyourrisk's picture

DEBT, DEBT AND MOAR DEBT

Wed, 08/26/2015 - 09:59 | 6472651 Viffer
Viffer's picture

Debt is good.

http://www.nytimes.com/2015/08/21/opinion/paul-krugman-debt-is-good-for-the-economy.html

 

Interesting enough ... the word "save" does not appear to be in the article.

Wed, 08/26/2015 - 09:52 | 6472612 sudzee
sudzee's picture

Sell!!!!!!

To who??????

Wed, 08/26/2015 - 09:53 | 6472615 Calculus99
Calculus99's picture

Only a mug trader gets himself into a position when a margin call is needed. 

Sorry, but it's true because a real trader, not a gambler who thinks he's a trader, would be out way before the real shit hits the fan. 

Hedge funds (the majority of them) = Either mug traders/gamblers or fee harvesting scams. 

Wed, 08/26/2015 - 10:03 | 6472664 Smiddywesson
Smiddywesson's picture

Yup.  Most of these guys are money raisers, and have only the most elementary knowledge of options, meaning they are gamblers.

Wed, 08/26/2015 - 12:36 | 6473512 Clowns on Acid
Clowns on Acid's picture

You guys are funny. Of course you really have no idea...

Wed, 08/26/2015 - 09:53 | 6472618 q99x2
q99x2's picture

Nobody said gold monkey-hammered again today yet. -$16

Wed, 08/26/2015 - 09:59 | 6472649 Bastiat
Bastiat's picture

Nothing compared to silver down 4%.

Wed, 08/26/2015 - 10:05 | 6472678 Montani Semper ...
Montani Semper Liberi's picture

 No way are PM's going to be allowed to shine while equities are in a meltdown, consequences be damned!

Wed, 08/26/2015 - 11:02 | 6472964 Urban Roman
Urban Roman's picture

What metals, there are no metals. TPM is out of 100 Oz doorstops.

Others are saying 'delay', and you know how that goes.

Wed, 08/26/2015 - 10:05 | 6472680 Smiddywesson
Smiddywesson's picture

Gold and silver are the most manipulted of paper assets, but then you already knew that.  Get ready for more paper pain, because they aren't going to let PMs rise before the collapse.  They can't.

Wed, 08/26/2015 - 09:59 | 6472648 Lumberjack
Lumberjack's picture

Brought to you once again from the nice guys at Enron...Stay tuned.

Wed, 08/26/2015 - 10:01 | 6472656 CheapBastard
CheapBastard's picture

Wait until reality hits all these pumped-up REITs.

Wed, 08/26/2015 - 10:07 | 6472691 Lumberjack
Wed, 08/26/2015 - 10:01 | 6472658 B2u
B2u's picture

So what happened to Vince Foster?

Wed, 08/26/2015 - 10:06 | 6472694 BandGap
BandGap's picture

He's with Ron Brown test firing revolvers in the Great Beyond.

Wed, 08/26/2015 - 10:20 | 6472768 viator
viator's picture

Yet another solar energy company takes a dump. How sustainable is that?

SunEdison, Inc. is a global renewable energy company headquartered in the U.S. In addition to developing, building, owning, and operating solar power plants and wind energy plants, it also manufactures high purity polysilicon, monocrystalline silicon ingots, silicon wafers, solar modules, solar energy systems, and solar module racking systems. Originally a silicon-wafer manufacturer established in 1959 as the Monsanto Electronic Materials Company, a former business unit of Monsanto Company, SunEdison's corporate headquarters are in Maryland Heights, Missouri, and the company's operational and solar headquarters are in Belmont, California with offices throughout the world. Monsanto sold the company in 1989. Prior to May 30, 2013, the company was known as MEMC Electronic Materials; the name change to SunEdison reflects the company's focus on solar energy.

Wed, 08/26/2015 - 10:39 | 6472884 Lumberjack
Wed, 08/26/2015 - 11:05 | 6473039 Grosvenor Pkwy
Grosvenor Pkwy's picture

Solar energy is technologically and economically non-viable, except for special applications, typically remote and small-scale locations without electric power service. And excepting government subsidies and tax breaks, and stupid venture-capitalists who flunked thermodynamics class in college.

You would be better off planting apple trees, or growing Christmas trees, or firewood.

Wed, 08/26/2015 - 10:20 | 6472769 Catullus
Catullus's picture

Ripping my ducking face off. FML with this stock.

Wed, 08/26/2015 - 10:35 | 6472858 Lumberjack
Lumberjack's picture
Is There Any Validity To SolarCity's Claims That Its Loans Are Not Subprime?

 

http://seekingalpha.com/article/3464626-is-there-any-validity-to-solarci...

 

 

  • When Jim Chanos called SCTY's loans "subprime", an assertion we have been making for a while, SolarCity CEO Lyndon Rive responded back immediately saying the argument was invalid.
  • We take apart Lyndon Rive arguments about SolarCity not being a subprime lender.
  • We discuss why the definition of subprime needs to go beyond the customers' FICO scores at origination and demonstrate why PPAs and leases are not competitive with unbundled utility rates.

On Friday, when faced with a high-profile assault on its stock from short seller Jim Chanos, SolarCity's (NASDAQ:SCTY) CEO Lyndon Rive called into CNBC to explain to viewers that Jim Chanos' claims are not true and the Company's loans are not subprime. Is there any validity to SolarCity's claims in this respect?

Mr. Rive stated that "Subprime market is customers with FICO scores of 640 and below. Our average customer FICO score is 750. So, it is really good customers. Our floor, the lowest customers we accept is FICO score of 650."

While we do not disagree that 640 is a fairly common FICO score threshold for determining sub-prime customers, there is wide variability, and underwriting guidelines vary from vendor to vendor and loan to loan. To get to the root of this argument, one needs to better understand the relationship between default rates, FICO scores and loan instruments.

In this context, it useful to note that FDIC for many years has maintained that high default rates occur below FICO scores of 660. There is considerable empirical and statistical evidence to support this view and also how perceived good credit risks can show increased default rates in a negative environment.

The image below, from VantageScore, shows how the default rates have changed in the last decade as the economy went in and out of a recession. (Note that VantageScore shown in the table below is similar to, but not the same as FICO score.)

Wed, 08/26/2015 - 11:06 | 6473045 The Axe
The Axe's picture

Since ZH has run a few stories...it probaly is a screaming buy NOW...

Wed, 08/26/2015 - 13:00 | 6473624 fed_depression
fed_depression's picture

Something is wrong in bond land on USTs

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