This is not the news the PPT and markets would have wanted on the 1st day following the pep talks last night. Perhaps people may like to add to this thread as more PPT enemies come to the surface (and there will be more).
in part only here:
Basis Capital hedge fund fails
Leon Gettler and Vanessa Burrow
August 31, 2007
BASIS Capital's Basis Yield Alpha Fund has been put into provisional liquidation, and investors in the Sydney hedge fund appear unlikely to get their money back.
The Basis Yield Alpha Fund had invested mainly in collateralised debt obligations (CDOs), bundles of bonds, loans and asset-backed debt securities that are divided into sections, or tranches, including the high-risk subprime mortgages.
While the aim of the CDOs is to spread the risk, commentators have described the process as being like putting horse dung and rubbish into a grinder to make sausage.
Apart from Basis, Macquarie's Fortress funds may have lost up to 25 per cent. Another hedge fund manager, Absolute Capital, has suspended redemptions in its funds to protect investors while it assesses the impact of its exposure to risky credit markets.
And RAMS, a listed non-bank lender, has also said its profits could be affected by the fallout.