Posted by , Aug 16, 2007 11:14AM

Moody's Warns of Potential for LTCM-Style Hedge Fund Collapse

By John Glover
Aug. 16 (Bloomberg) -- Moody's Investors Service warned t
global credit rout may cause a major hedge fund to collapse,
along similar lines to the demise of Long-Term Capital
Management LP in 1998.
Hedge funds face potential losses on collateralized debt
obligations, securities packaging other assets, Chris Mahoney,
vice chairman of Moody's said on a conference call today.
``A possible consequence of the repricing of risk assets
would be the failure and disorderly liquidation of a hedge fun
or other institution of sufficient size as to disrupt markets,
as LTCM threatened to do in 1998,'' Mahoney said.

Posted by whoa there cowboy, Aug 16, 2007 11:17AM

hold on tight its gonna be one helluva ride!

Posted by Blunt Smoke, Aug 16, 2007 11:21AM

Hey if you have stock and want to sell it, who has to buy it?

Posted by One of the guilty at Moodys, Aug 16, 2007 11:21AM

Yes....we missed everything to date. We were coopted by the street and now that its obvious that more big funds are going out of business, we are going to predict the obvious.

By the way, we don't want to be called before congress this fall, or Anderson-ed out of business, so we have re-organized to try to separate ratings from marketing and research and analytics this week.

its so obvious that we are culpable in this thing that we are going to get ahead of the investigation ourselves.

Posted by BrianVan, Aug 16, 2007 11:24AM

They were crying because they just had meaningful sex with someone other than a prostitute. It was a first for them.

Posted by , Aug 16, 2007 11:26AM

moodiots

Posted by Blunt Smoke, Aug 16, 2007 11:31AM

so what's with all the laughs? I guess GS is supposed to be the best but they lost 27% on one of their hedge funds? I guess that is rather humbling.

Posted by , Aug 16, 2007 11:34AM

Does anyone have an update on the London HF liquidating?

Posted by , Aug 16, 2007 11:38AM

I am more concerned about the grown men crying. I'll go buy them a kebab.

Posted by , Aug 16, 2007 11:43AM

Are you serious Bess? How are we supposed to know when you're reporting the news and when you're just making it up?

Posted by who knows Bess, Aug 16, 2007 11:53AM

yah Bess, are you being serious

Posted by downtown baby, Aug 16, 2007 11:53AM

reports are partially correct; grown men are crying, they are still inside though, haven't yet made it out

Posted by an informed source, Aug 16, 2007 11:58AM

all three goldman funds will ultimately liquidate in my opinion.

Posted by LexSteelz, Aug 16, 2007 12:00PM

Trust me, other than potential bonus cuts everything's gonna be alright. Blame the media!! Jon Blau of Credit Suisse,"I would argue that this remains an idiosyncratic event. And it’s being amplified by the financial press because the financial press talks to a banker, talk to a trader. The trader says to himself, ‘I’ve lost all the money I made this year; I’m having…a bad day; my bonus is impaired...waaah.....waaah’ and he tells the financial reporter it’s the end of the world.The financial reporter of course prints that because he wants to make a big splash with his editors so that he can move on to some other job that he’d much rather have, say working on the political desk.So we have this amplification because of the nature of the fact that the bad thing is now happening to us. Nevertheless we still see robust economy and low volatility in most of the developed markets around the world."
Wipe those tears you lil' b|tches!

Posted by , Aug 16, 2007 12:07PM

Moody's KMV is the most fucked-up credit rating system: it runs on the senile academic models of the 1970s!!!

Posted by leo, Aug 16, 2007 1:34PM

the rating agencies are in for some law suits

Posted by , Aug 16, 2007 4:35PM

Any news on the cry guys?