• English   Deutsch   
  •  GMT      
  • LONDON      
  • FRANKFURT      
  • NEW YORK      
  • SAO PAULO      
  • TOKYO      
  • SYDNEY      
Hedge Fund Database
Morgan Hedge Fund Database



  Hedge Fund Search
Name, ISIN, Ticker:

Hedge Funds Search Detailed Search
  Hedge Fund Directories
Listed Hedge Funds:9,895
HF Professionals:16,361
Service Provider:506
Lone Star buys CDOs from Merrill Lynch
  Hedgeweb - TUE, JUL 29 2008
Funds & Investment Merrill announced that it would sell CDOs with a nominal value of $30.6bn to Lone Star Funds, the distressed-debt investor.

The securities will be sold for just $6.7 bn, or about 22 cents on the dollar. At the end of the second quarter, the bank had estimated the value of the CDOs at $11.1bn.

Merrill also agreed to cancel CDO hedges with XL Capital Assurance, the bond insurance group, and said it had entered into settlement negotiations with other bond insurers. The bank will write down $500m related to the cancellation of hedges with XL and a further $800m related to potential settlements with other bond insurers. With the $4.4bn loss on the CDOs, Merrill expects a third-quarter writedown of $5.7bn.

Rating agencies have warned Merrill that it risks being downgraded to junk status if it sells any of its valuable stake in money manager BlackRock.

© Morgan Hedge™ · HEDGEweb™
Morgan Hedge and HEDGEweb are Trademarks of morganhedge.com, TAA LLC and VIImedia S.A.