Bear Stearns blocks withdrawals from third hedge fund

Bear Stearns, the manager of two hedge funds that collapsed last month, blocked investors from pulling money out of a third fund as losses in the credit markets expand beyond securities related to subprime mortgages. The Bear Stearns Asset-Backed Securities Fund had less than 0.5 percent of its $900 million of assets in securities linked to subprime loans, spokesman Russell Sherman said in an interview yesterday. Even so, investors concerned about losses sought to withdraw their money, he said.

Other hedge funds have announced losses. Macquarie Bank Ltd., Australia's largest securities firm, said today [1 Aug 2007] that investors in two hedge funds may lose 25% of their money and Boston-based hedge fund manager Sowood Capital Management LP said yesterday [31 Jul 2007] that it lost $1.5 billion in July after declines in the corporate debt markets.

The latest developments signal that the slump in the subprime mortgage market may not be "contained," as officials including Treasury Secretary Henry Paulson have said. "You don't necessarily have to be a subprime fund now to be having problems," said Bryan Whalen, a money manager in Los Angeles at Metropolitan West Asset Management, which oversees more than $21 billion in fixed-income assets.

See also :

1. Bear Stearns fund value wiped out

(2007-08-02 13:16:48 SGT) [Biz] Permalink

Bear Stearns fund value wiped out

rte.ie (backblog) :

US investment bank Bear Stearns has told investors in a hedge fund it manages that the fund's value has been wiped out following losses of billions of dollars from property. The Wall Street firm said in a letter to investors that the fund, the Enhanced Leverage Fund, has 'no value left' while another hedge fund it runs had 'very little value left'. The funds had previously contained a combined $20 billion in investments. Bear Stearns' funds floundered following risky securities investments related to sub-prime mortgages which are granted to Americans with patchy credit histories. Such mortgage loans have been plagued in recent months by late payments and a rising tide of home foreclosures amid a persistent year-long housing market slump.

forbes.com :

As Wall Street's top brokerages scramble to reassure investors they have limited exposure to the growing subprime mortgage crisis, analysts warned that the worst may be yet to come. When Bear Stearns disclosed Tuesday [17 Jul 2007] that two of its flagship hedge funds that invested in the riskiest part of the home loan sector were essentially worthless, red flags went up everywhere.

The move will almost certainly trigger a mass revaluation of portfolios with similar investments, causing big writedowns at the banks, said Richard Bove, an analyst with Punk Ziegel & Co. Bove downgraded virtually all of the Wall Street banks, saying the Bear funds' collapse does not reflect a problem at the firm itself, but rather reveals troubles with the entire system. Investors got a major clue on what the market thinks of these types of assets when Bear Stearns tried to value the funds. The bank found the assets in one fund were essentially worthless and came up with a value of less than 10 cents on the dollar for assets in the other.

(2007-08-02 13:00:21 SGT) [Biz] Permalink

Scientists predict floods in New York from global warming

peakoil.com -> earthtimes.org :

New York and several coastal cities in northeast United States would suffer a huge upsurge in floods by the end of the century if temperatures continue to rise because of global warming, the Union of Concerned Scientists said in a report published Thursday [12 Jul 2007]. New York State's 3.5-billion-dollar agricultural industry, particularly its apples, could be devastated and New York City could be hit by floods every 10 years instead of every 100 years.

"The northeast can anticipate substantial - and often unwelcome or dangerous - changes during the rest of this century," the report said. "The very character of the northeast is at stake." The group warned that unless carbon dioxide emissions - the root cause of climate change - are reduced, the inundation of coastal areas in Long Island could send water to the lower parts of Manhattan, flooding subways and the financial district. Long Island lobsters could disappear or move to colder climates in New England. The group's report said higher temperatures would increase smog and reduce air quality, affecting conditions for people with respiratory problems and allergies.

(2007-08-02 12:41:09 SGT) [Env] Permalink

Singapore's first public CNG station to be ready by Jan 2008

greencarcongress.com -> channelnewsasia.com :

Singapore's first-ever publicly-accessible refuelling station for compressed natural gas (CNG) is expected to start running by next January [2008]. CNG is seen as a cleaner and cheaper alternative to petrol as it produces very little pollutants and costs about 50% less. The station will be built and operated by Smart Automobile, which also runs Singapore's first and largest fleet of CNG taxis. Smart Automobile expects to charge about 75 cents per litre for CNG, much cheaper than petrol, which costs from $1.60 per litre.

The new CNG refuelling station will sit on a 55,000-square-foot site on Mandai Road, just off the Woodlands Road junction. Smart Automobile has obtained a 30-year lease to build the station, which will serve all CNG-fuelled vehicles here. The company hopes to have four more stations by 2011, including one in Serangoon North - to be up and running by next September. All its CNG stations will operate under the name Smart Energy. There are 400 CNG vehicles on the road here, and these currently need special permission to refuel at Singapore's sole CNG station on Jurong Island. Once the Mandai station is ready, however, refuelling on Jurong Island will no longer be allowed.

(2007-08-02 12:36:39 SGT) [Energy] Permalink

Argentina cuts gas supply to Chile as energy crisis worsens

peakoil.com -> mercopress.com :

Argentina suspended Wednesday [11 Jul 2007] natural gas shipments to neighbouring Chile to ensure domestic supplies as one of the coldest winters in recent history grips Argentina, Chile, Uruguay and the south of Brazil. "Argentina has been exporting in a way that defies reason and it doesn't even have enough gas to meet its domestic demand," said Gustavo Calleja, former undersecretary of fuels between 1983 and 1986.

Argentina's demand for energy has soared with four years of sustained economic growth exceeding 8%. At the same time, lower-than-expected rainfall has cut electricity output at hydro-electric dams. In winter, gas consumption jumps as Argentines use the price-controlled fuel to heat poorly insulated homes, while demand for electricity also rises, increasing the gas needs of power generators. Argentina is in the throes of a cold wave that on July 9 saw Buenos Aires' first snowfall in almost 80 years. Chile, the world's largest copper producer, receives almost all the natural gas it needs from Argentina.

(2007-08-02 12:26:14 SGT) [Energy] Permalink

Oil hits record high of $78.77 a barrel

reuters.com :

Oil hit a new record high above $78 on Wednesday [1 Aug 2007] after a larger-than-expected drop in crude inventories in the United States. U.S. crude rose to an intraday high of $78.77 a barrel, surpassing the previous peak of $78.40 reached in July 2006.

Crude oil stocks in the world's largest energy consumer tumbled 6.5 million barrels, the Energy Information Administration said, surpassing analysts' expectations for a 700,000 barrel decline. Oil has surged more than $8 over the past month despite a bout of risk aversion that has hit equity markets amid escalating sub-prime lending woes in the United States. Analysts attribute the bullish sentiment to an influx of fund money, geopolitical tensions, and OPEC's reluctance to raise production.

- The $78.40 record has finally been broken. Been waiting a whole year for this.

(2007-08-02 00:16:17 SGT) [Energy] Permalink

Main | Next day (Aug 2, 2007) »

Most popular blog postings on lowem.log :

1. Singapore MRT rail network length to double by 2020
2. 2010 Nissan Leaf electric car specifications : 107hp, 24KWh lithium-ion batteries, 100-mile range
3. Live spot gold price quotes chart on COMEX
4. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
5. AVG Anti-Virus Free Edition 2011 direct download link
6. Real-time live gold and silver price quotes chart on COMEX
7. Singapore electric vehicles : Government agencies EMA and LTA to study EV introduction
8. Book review : Shut Down by William Flynn

Featured articles on lowem.log :

1. Book review : Shut Down by William Flynn
2. Singapore electric cars testing starts with 9 electric vehicles
3. Honda, GS Yuasa JV to make lithium-ion batteries for 2010/2011 Honda Civic Hybrid
4. 2010 Honda Civic Hybrid preliminary specifications released
5. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
6. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore : Nuclear power not ruled out