- Lehman Brothers is having a capital call for $5 billion to shore up its capital structure. This is not Bear Stearns brokerage, firms are still facing some difficult times for the same reasons that were driving the crisis at the beginning of the year.
- Auction-rate market has been destroyed and some investors will not get their money back. This is a $330 billion market that is in financial gridlock and uncertainty.
- Ambac and MBIA downgraded to AA with negative credit watch from S&P.
- Fed still using auction process to buy Non-Treasury collateral.
- Sub-prime losses $8 billion for Japanese banks.
"Disciplined Systematic Global Macro Views" focuses on current economic and finance issues, changes in market structure and the hedge fund industry as well as how to be a better decision-maker in the global macro investment space.
Friday, June 6, 2008
Credit crisis iceberg - risk below the surface
It seems like the credit crisis has fallen off the radar screen from the attention of many analysts but it more like a iceberg where a lot is going on below the surface.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment