Australia's Basis Capital has indicated that the losses incurred by its Basis
Yield Fund are more extensive than previously thought. The hedge fund manager
says the value of the fund has fallen by more than 50 per cent. It had
previously advised of a 14 per cent fall in the fund's value during June
2007. A consortium of banks has stepped in to sell some of the fund's assets
in order to reduce investors' exposure to the losses, and accounting firm
Grant Thornton has been appointed to manage this process. Basis Capital has
been hit by the problems in the sub-prime mortgage market in the US; Original
article by Jonathan Barrett; The Australian Financial Review; 20 July 2007;
page 73 Abstract by ABIX/LexisNexis

Good ole hedge funds at it again, this one was once the golden child of Australian Hedge Funds.

Subprime mortgages affecting all forms of RMBS's.

Leverage + Weakening of traditionally strong AAA notes = BIG LOSSES.