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Hedge Funds Reel From Margin Calls Even On Treasuries

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If you have leverage, you're stuffed,'' said Alex Allen, chief investment officer of London-based Eddington Capital Management Ltd., which has $195 million invested in hedge funds for clients. He likens the crisis to a bank panic turned upside down with bankers, not depositors, concerned they won't get their money back.
March 10 (Bloomberg) -- The hedge-fund industry is reeling from its worst crisis in a decade as banks are now demanding more money pledged to support outstanding loans even when the investment is backed by the full faith and credit of the United States.

Since Feb. 15, at least six hedge funds, totaling more than $5.4 billion, have been forced to liquidate or sell holdings because their lenders -- staggered by almost $190 billion of asset writedowns and credit losses caused by the collapse of the subprime-mortgage market -- raised borrowing rates by as much as 10-fold with new claims for extra collateral.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

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Mmm..... Looks kinda interesting.... They talk about "Hedgie-land" or whatever around St James and Mayfair in London...... Whole lotta pin-striped suits wafting around - "making billions" etc etc. & Doing sod all for it..... Hopefully they'll be laughing on the other side of their faces anytime now......

Edited by eric pebble

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Mmm..... Looks kinda interesting.... They talk about "Hedgie-land" or whatever around St James and Mayfair in London...... Whole lotta pin-striped suits wafting around - "making billions" etc etc. & Doing sod all for it..... Hopefully they'll be laughing on the other side of their faces anytime now......

Eric, did your account get hacked mate?

No red text?

No CAPS?

Sad days, sad days.

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  • 298 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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