The troublesome US asset-backed insecurities market is mauvaises nouvelles for the French too, apparently. Oddo & Cie, a Paris-based money manager is closing three hedge funds worth 1bn Euros ($1.37bn) after losses on collateralized debt obligations, Bloomberg reports. The funds, which held 15% of investments in US CDOs, will be close in “the shortest possible time frame.”
“Like many actors, we have tried to revitalize the performance of our funds by investing in CDOs. Like others, we noticed recent problems with short-term liquidity and were caught out by the subprime dilemma,” said Arnaud Ploix, a spokesman for Oddo.
Oddo to Shut Three Funds `Caught Out' by Credit Rout [Bloomberg]
Mark Zuckerberg And Jack Dorsey Are Stealthily Pouring Money Into A Dutch Fintech Unicorn
And that is bad news for ol' Henry Kravis.
The French Fart in the General Directions of London and Frankfurt
Oh, the wily and unscrupulous French: They spend years arguing with the ferocity of a cockfighter for tough, nay, draconian financial regulations. And then they elect a Socialist who promises to be even less interested in the concerns of the monied classes. And then, when Europe's two biggest economies—the ones housing the financial centers the French hope to destroy—announce that they'll impose the aforementioned tough, if not draconian, regulations, the French say, joke's on les Huns et les rosbifs.
The Fed Will Spend 2018 Trying To Prevent An Avalanche From Pouring Out Of Its Balance Sheet
Happy New Year, Jay Powell.