Hedgsters Fair Game
Yves Smith at Naked Capitalism in a must read, brings some good news to light...
The hedge funds holding repos or any kind of counterparty agreement are NOT exempt under the new BK laws.
In addition, with regard to re-marking (valuation of assets), the worst is yet to come...
and as we've Nattered before, somebody is going to make a killing scooping up paper at investor expense.
"In an amazing instance of collateral damage, the new bankruptcy law that took effect in October 2005, designed to enable banks to wrestle more money from overextending credit card users, has caught hedge funds in its net.
... the remarking of positions as a result of the painful last couple of months has not yet worked its way through the system."
From the Financial Times:
"They have created so many exceptions to the protections [debtors had] under bankruptcy law.
If you have a repo agreement, or any kind of counterparty agreement with a bank, those are exempt from the stays under the bankruptcy law.
The banks and brokers will be hurt by the credit crisis. But they might also pick up a lot of undervalued assets, at investors' expense."
The hedge funds holding repos or any kind of counterparty agreement are NOT exempt under the new BK laws.
In addition, with regard to re-marking (valuation of assets), the worst is yet to come...
and as we've Nattered before, somebody is going to make a killing scooping up paper at investor expense.
"In an amazing instance of collateral damage, the new bankruptcy law that took effect in October 2005, designed to enable banks to wrestle more money from overextending credit card users, has caught hedge funds in its net.
... the remarking of positions as a result of the painful last couple of months has not yet worked its way through the system."
From the Financial Times:
"They have created so many exceptions to the protections [debtors had] under bankruptcy law.
If you have a repo agreement, or any kind of counterparty agreement with a bank, those are exempt from the stays under the bankruptcy law.
The banks and brokers will be hurt by the credit crisis. But they might also pick up a lot of undervalued assets, at investors' expense."
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