A $6.6bn investment vehicle run by Cheyne Capital, a London hedge fund, on Tuesday told investors it had breached funding restrictions, forcing an eventual wind down. The breach of valuation conditions by Cheyne Finance, a two year-old structured investment vehicle, triggers limits on its ability to invest or raise new debt. Cheyne Finance’s troubles come as problems at similar vehicles are spooking credit markets with the prospect of multibillion dollar firesales.

This entry was posted by Gwen Robinson on Wednesday, August 29th, 2007 at 5:35 and is filed under Capital markets, Hedge funds. Tagged with cheyne. Edit this entry.