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’Basis Capital proposes fund split
Basis Capital has asked investors in the Australian manager’s surviving hedge fund for permission to split it in two in an attempt to rescue the struggling business, which was hammered by the US subprime crisis.
CDS report: It’s a good time to buy protection
The perceived risk of owning European corporate bonds rose on Thursday, as traders fretted over the possibility hedge funds and other vehicles might have to sell assets to meet short-term funding requirements.
Yen rises as Basis Capital fund declares insolvency
News late Wednesday that a troubled hedge fund run by Australia’s Basis Capital had declared itself insolvent and appointed liquidators in the Cayman Islands in the hope of recovering some money for investors has fanned fresh fears of the extent of the knock-on effect from the US subprime lending crisis.
Basis fund may lose more than 80% of value
Basis Capital, an Australian hedge fund battered by declines in the US subprime market, said losses in its Yield Fund may exceed 80 per cent, reports Bloomberg. The hedge fund has been unable to “accurately estimate” the net asset value of units in the fund because of “further deterioration of market conditions,”’ Basis said on Wednesday in a letter sent to investors.
Hedge funds clash over question of value
Bitter disputes are developing behind the scenes in the hedge fund industry about the way funds are valuing some assets for their end-of-month performance reports – and these tensions could delay awaited performance reports on the net asset value (NAV) of hedge funds’ portfolios in July,
… As Macquarie suffers subprime fall-out
Macquarie Bank has warned that two of its debt funds, run by Macquarie Fortress Investments, could face loses of more than A$300m, or up to 25 per cent of their value, but said the funds are not exposed to the US subprime mortgage market.
Fall-out from the subprime fall-out: Mac Bank’s turn
The rumour has been doing the rounds Down Under since leveraged funds run by Australian hedge fund groups Absolute Capital and Basis Capital became embroiled in July in the investment hell of the US subprime mortgage debacle:
Subprime woes hit another Aussie hedge fund
A second Australian hedge fund has become caught up in the subprime mortgage fallout, with Absolute Capital telling investors it has suspended withdrawals from two funds until October due to a lack of liquidity in structured credit markets.
[Backtracking] #2 “we feel terrible”
It’s the rating agencies again, and this time, it’s S&P’s stunning mea culpa, buried in a wave of articles in the Australian media about the Basis Capital debacle.
Reporting on the crisis engulfing two of the Australian hedge fund operator’s subprime asset investment funds,
Basis Capital appoints Blackstone
Basis Capital, the $1bn Australian hedge fund manager in crisis talks with creditors, has appointed Blackstone as financial advisor to its Basis Yield Alpha and Basis Pac-Rim Opportunity funds. Both funds are heavily exposed to the US subprime mortgage market and have faced difficulties meeting investor margin calls.
Subprime crisis – the Basis Capital letter to investors
Here’s the letter sent to hapless investors in Basis Capital after the Australian hedge fund manager missed margin calls on Monday. Accountants Grant Thornton have been appointed as restructuring advisers and investors in the firm’s yield fund are being told to prepare for losses of more than 50 per cent.
Australia’s Basis Capital faces creditor crisis
Basis Capital, one of Australia’s biggest hedge fund managers, is in crisis talks with creditors after banks seized and began to sell some investments linked to hard-hit US subprime mortgages, particularly the two failed Bear Stearns funds.