The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: robbie_nw who wrote (82837)	6/19/2007 5:24:48 AM
From: robbie_nw	Read Replies (2) of 110194

RE BEAR: auction of the remaining assets would bring real pricing clarity to current cdo values....an inconvenient truth for those avoiding mark-to-market. Such clarity would put serious pressure on the whole koolaid party. Imho, Blackstone, JPM, MER,etc. won't let it happen. >>>Last week, the Bear fund auctioned off about $4 billion in relatively highly rated bonds to raise desperately need cash. What's left is $2 billion in illiquid and arcane assets known as collateralized debt obligations that were already difficult to trade and are now rapidly losing their value. The prospect of these securities being scooped up by the bond market was already dim, but with few trading desks likely to provide capital to a struggling fund, the losses could be driven higher. If creditors don't provide capital and the fund is forced to sell the assets, which no bond trading desk is anxious to bid on, "The world becomes very different, very fast for a lot of people," said a wary hedge fund manager.<<<

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