The hazards of leverage


	The hazards of leverage

Forbes Business

3-10-2008 10:07 AM

284 views

Forbes Business says:

Another fund finds itself in hot water because of its leverage to the volatile mortgage securities market. It probably won't be the last.

Add a Comment

Login to Comment. Not a member yet? Sign up

View the Top Clips from March 10, 2008

Embed This Clip In Your Site...

<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/5469dd48-51d2-4054-8a47-3bb19ebcf6be/4442E1F8-E4B6-44BA-A070-E9665E48CA5D/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://bloomberg.com/apps/news?pid=20601087&sid=aF11bvqlPIIs&refer=home" href="http://bloomberg.com/apps/news?pid=20601087&sid=aF11bvqlPIIs&refer=home" style="font-size: 11px;">bloomberg.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://bloomberg.com/apps/news?pid=20601087&sid=aF11bvqlPIIs&refer=home">Carlyle Capital Says Lenders May Force Further Sales</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://bloomberg.com/apps/news?pid=20601087&sid=aF11bvqlPIIs&refer=home"><P><A target="_blank" href="http://www.carlyle.com/">Carlyle Group</A>'s mortgage-bond fund
said creditors may liquidate as much as $16 billion of
securities unless the two sides reach agreement on debt
repayments.     </p> <P>The fund has asked lenders to refrain from further sales
after they liquidated collateral securing $5 billion of debt</P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://bloomberg.com/apps/news?pid=20601087&sid=aF11bvqlPIIs&refer=home">Carlyle Capital used loans to buy about $22 billion of AAA
rated mortgage debt issued by Fannie Mae and Freddie Mac, which
the firm says have an ``implied guarantee'' from the U.S.
government. Even those bonds have slumped following the collapse
of the subprime-mortgage market, leading to the failure of hedge
funds led by Peloton Partners LLP.</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/4442E1F8-E4B6-44BA-A070-E9665E48CA5D/blog/" title="blog or email this clip"><img src="http://content8.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

Clipmarks: Home; New Clips; Top Clips; Dashboard

Popular Topics: News; Life; Science; Technology; Entertainment

Get Started: Sign Up; Install Clipping Tool; How Clipping Works; Clip-to-Blog™; ClipSearch

Tools and Resources: FAQ; ClipWeek; Top Clippers; Top Tags; Site Map

About Clipmarks: About Us; Contact; Blog; Copyright; Privacy; EULA

Search Options

Related Clips

More clips from Forbes Business

Today's Top Clips