{"id":199661,"date":"2007-07-06T11:11:00","date_gmt":"2007-07-06T16:11:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/07\/06\/people-cannot-sell-their-hedge-fund-investments-at-any-price\/"},"modified":"2007-07-06T11:11:00","modified_gmt":"2007-07-06T16:11:00","slug":"people-cannot-sell-their-hedge-fund-investments-at-any-price","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/07\/06\/people-cannot-sell-their-hedge-fund-investments-at-any-price\/","title":{"rendered":"People Cannot Sell Their Hedge Fund Investments at ANY Price."},"content":{"rendered":"

There is something like 500 trillion in instruments like this. What happens if even 5% of that goes south?<\/p>\n

Buyers avoid Bear Stearns’ cut-priced sale<\/a>
By James Mackintosh and Gillian Tett in London<\/p>\n

Published: July 4 2007 03:00 | Last updated: July 4 2007 03:00<\/p>\n

Investors in the worse-hit of two stricken Bear Stearns hedge funds are offering to sell their holdings for as little as 11 cents on the dollar<\/span><\/span> but still finding no buyers, according to unfilled trades on Hedgebay, a secondary market for funds.<\/p>\n

Vulture funds and others have been quick to bid for holdings in the two funds, but the best bid for Bear Stearns High-Grade Structured Credit Strategies Enhanced Leveraged Fund, the more geared of the two, is just 5 cents on the dollar.<\/span><\/span><\/p>\n

Private sales of stakes are the only way investors can exit the two Bear funds, after the bank suspended redemptions in May amid a wave of withdrawals.<\/p>\n

“There are buyers but they can’t agree on price,” said Jared Herman, co-founder of Bahamas-based Hedgebay.<\/p>\n

The less-geared Bear Stearns High-Grade Structured Credit Strategies Fund, which the bank has rescued with a $1.6bn loan, is being offered at about 70 cents on the dollar. The fund is only attracting bidders at about 30 cents<\/span><\/span>, according to people who use the system.
….
The Enhanced Leverage Fund’s net assets of $638m were more than 10 times geared in March, meaning a drop of just 10 per cent in the value of its holdings would wipe out investors.<\/span><\/span>
…<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

There is something like 500 trillion in instruments like this. What happens if even 5% of that goes south? Buyers avoid Bear Stearns’ cut-priced saleBy James Mackintosh and Gillian Tett in London Published: July 4 2007 03:00 | Last updated: July 4 2007 03:00 Investors in the worse-hit of two stricken Bear Stearns hedge funds …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,973],"tags":[],"class_list":["post-199661","post","type-post","status-publish","format-standard","hentry","category-bubble","category-economy"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199661"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=199661"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199661\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=199661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=199661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=199661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}