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Bullish on Bear Stearns

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Monday Lehman. Tuesday Goldman. Today was Bear Stearns' turn to release its second-quarter earnings report. So how’re they doing? Pretty effing good. Profits up 81 percent from gains in bond trading, equity trading and investment banking fees.
Since Bear Stearns depends heavily on revenues from underwriting mortgage-backed bonds and bond trading, some had thought the firm would be hurt by rising interest rates this spring. It seems they dealt with this hedge fund style: balancing the interest rate risk by purchasing derivatives linked to loan defaults. If you can't make a buck going in, you've got to make it going out.
Bear Stearns 2nd-Qtr Earnings Rise 81% on Trading [Bloomberg]