October 28, 2008
Actual Agreement is Less and Later – Foreign Subsidiary Defaults may be Unavoidable
Analysis of:
Iceland agrees $6bn deal with IMF | business.timesonline.co.ukAuthor: GLG Expert ContributorA whole country, albeit be it a small one, is on the brink of bankruptcy. This has dramatic consequences to its foreign trade and foreign payments. It has just simply stopped functioning. A bailout loan from IMF and other countries will restore system functioning and allow time for the real economy...
September 29, 2008
Delayed But Not Different
Analysis of:
The decline and fall of Britain's high street | business.timesonline.co.ukAuthor: GLG Expert ContributorAll of the above took place in the US in the 1960's or so. People live and shop for economic utility. This utility can come in the form of convenience, price or pleasure.
September 17, 2008
Leverage thrills, but kills the sell-side institutions.
Analysis of:
CLSA's Wood Sees Another $1 Trillion in Credit Losses | www.bloomberg.comAuthor: GLG Expert ContributorUnderlying causes of the financial meltdown are discussed, with hints at the possible solution for the Fed/government.
August 19, 2008
Bounce in global bank shares will be limited from here
Analysis of:
Bank Debt Risk Rises as Writedowns, Losses Exceed $500 Billion | www.bloomberg.comAuthor: GLG Expert ContributorSince January 2007 the world’s biggest commercial and investment banks have written down $497bn of bad debt. The optimists suggest the worse is now behind us. Perhaps, but the bounce will be limited from here. Hope springs from the belief that banks have written down what there is to be written down,...
June 11, 2008
As you CDO, so shall you reap!
Analysis of:
Losses Push Lehman To Weigh Raising New Capital | online.wsj.comAuthor: GLG Expert ContributorLarge sell-side investment banks, such as Lehman, that indulged in loads of CDO sowing, will continue to reap a massive shrinkage in their stock market capitalization.
April 10, 2008
Reported performance of quantitative hedge funds needs to be viewed in its entire context
Analysis of:
Simons, Mandel Post Their Biggest Drops in Fund Slump | www.bloomberg.comAuthor: GLG Expert ContributorVarious quantitative hedge funds still retain their place and charm in a well-diversified portfolios. As usual, the investor in hedge funds needs to be discriminating avoiding the losers and paying attention to the ex-ante correlation properties of their portfolio.
March 12, 2008
Selling Active Asset Management to the Skeptics
Analysis of:
And God created alpha | www.economist.comAuthor: GLG Expert ContributorProvides a brief, non-technical critique of an academic paper developed to promote and legitimize long/short style asset management. The article reviews attempts to replicate successful Hedge Fund strategies and resistance to the exorbitant fees typically charged, part payable regardless of actual...
March 6, 2008
Investment Scrutiny By the EU: A Delicate Dance
Analysis of:
EU Seeks Code for Sovereign Wealth Funds | biz.yahoo.comAuthor: GLG Expert ContributorSandwiched between US financial powerhouses and Middle Eastern SWF's, the EU is threatening additional financial regulation unless greater transparency is achieved. Greater attention is being paid as the US subprime lending crisis effects many European investors(institutions and municipalities)...
March 6, 2008
Petrodollar Recycling: A Marriage of Economic Convenience
Analysis of:
Cash-Rich, Publicity-Shy, Abu Dhabi Fund Draws Scrutiny | www.nytimes.comAuthor: GLG Expert ContributorThough neither party warms to the arrangement, Middle East oil exporters and the US are intertwined in a relationship which has grown in size and strength over the past several decades.
Despite our protestations and endless goal setting, oil imports climbed as a share of consumption since the 'war'...
March 5, 2008
Message to the US government: Do not intervene as financial excesses unwind
Analysis of:
Bernanke Call for Mortgage Forgiveness Puts Pressure on Paulson | www.bloomberg.comAuthor: GLG Expert ContributorIf the agents of the US government, Bernanke from the Fed and Paulson from the Treasury, intervene in the functioning of the capital markets as financial excesses unwind, they might create more problems, such as unwittingly making mortage credit more expensive as investors shun them if interest...