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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (5371)	3/22/2008 6:46:15 PM
From: Paul Kern	Read Replies (2) \| Respond to of 71463

That process has already begun Vi....the deleveraging taking place last week with the JPM bailout is the beginning of the HEDGE FUND redemption problem.. Hedgies are going to have to massive get out of positions to get cash ..... And, remember, because of leverage, hedge funds have to sell $10-$30 in assets to return one dollar to an investor. Carlyle II where are you?

To: ggersh who wrote (5371)	3/23/2008 12:32:16 AM
From: Real Man	Read Replies (1) \| Respond to of 71463

Looking like subprime lenders in March last year... hf-implode.com Citigroup-sponsored hedge funds are dropping like flies (and being given credit lifelines by sugar daddy Citi). In the latest, ASAT Finance and sister fund group MAT Finance have already used up $600M of emergency funding from the parent company, and have just been given another $400M to stay afloat. A Citi spokesman says: A spokesman for Citigroup said: "Returns have been hurt by one of the most volatile periods for fixed income, in particular municipal markets, in recent memory." "The investment from Citigroup provides the funds with additional equity capital and enough liquidity to make margin calls, continue to operate and potentially recover a portion of the decline in net asset values," the spokesman added. Potentially recover a portion of the decline in values—that doesn't sound too optimistic. We're filing these funds under "imploded" as they likely wouldn't have made it this far without the emergency lifelines. Numerous sources cite the funds as having total capital around $2B and assets around $15B, which would work out to about 7.5x leverage. However, the distribution between MAT and ASAT is unknown to us. If you have more information, please drop us a line. hf-implode.com