Post by aelusive on Jul 5, 2007 14:12:24 GMT -5
According to an article by top journalist John Browne and reported on the Newsmax website,
the financial world was stunned by the fear that Bear Stearns may have to close 2 of its hedge funds which are
heavily invested in some twenty billion of subprime mortgage market instruments.
It appears that a central issue of contention was simply what the Financial Times called "cov-lite" deals.
This is short for dilution, or perhaps exclusion, of various restrictive covenants which have traditionally been generally standard in the lending industry.
Apparently, some hedge funds are using their huge leverage as well as major financial clout to force lenders to lend on conditions which include
small changes made to what is termed the "boiler plate," restrictive covenants contained in the loan agreements.
This makes sure that the borrower meets certain financial standards on an up-to-date basis. Cash flow coverage of interest payments, margin call levels and debt/equity ratios would be examples.
Quarterly Unemployment forecast
These are some primary United States economic statistics and indicators that are scheduled to be released within a few days, as the week is shortened by the July 4 National holiday. Thomson IFR Markets has generously and capably provided the median forecasts.
Their work is appreciated, and they are excellent as usual.
Also, Information and forecasts about economic & employment numbers may be found at www.reformingworkerscomp.com/
Furthermore, News Max reported, GDP has slowed down over the last year to a rate of only 0.7 percent in the first quarter of 2007. Ouch, that really hurts.
The Fed is holding out hopes that inflation will begin to slwo down and that economic growth will be "moderate" this year, picking up in the second half.
Similiar news may be found over at the be found at www.ifipcongress.org
Anyways I hope this article was at least somewhat informative.
the financial world was stunned by the fear that Bear Stearns may have to close 2 of its hedge funds which are
heavily invested in some twenty billion of subprime mortgage market instruments.
It appears that a central issue of contention was simply what the Financial Times called "cov-lite" deals.
This is short for dilution, or perhaps exclusion, of various restrictive covenants which have traditionally been generally standard in the lending industry.
Apparently, some hedge funds are using their huge leverage as well as major financial clout to force lenders to lend on conditions which include
small changes made to what is termed the "boiler plate," restrictive covenants contained in the loan agreements.
This makes sure that the borrower meets certain financial standards on an up-to-date basis. Cash flow coverage of interest payments, margin call levels and debt/equity ratios would be examples.
Quarterly Unemployment forecast
These are some primary United States economic statistics and indicators that are scheduled to be released within a few days, as the week is shortened by the July 4 National holiday. Thomson IFR Markets has generously and capably provided the median forecasts.
Their work is appreciated, and they are excellent as usual.
Also, Information and forecasts about economic & employment numbers may be found at www.reformingworkerscomp.com/
Furthermore, News Max reported, GDP has slowed down over the last year to a rate of only 0.7 percent in the first quarter of 2007. Ouch, that really hurts.
The Fed is holding out hopes that inflation will begin to slwo down and that economic growth will be "moderate" this year, picking up in the second half.
Similiar news may be found over at the be found at www.ifipcongress.org
Anyways I hope this article was at least somewhat informative.
