Funds Suspending withdrawals due to the subprime crisis

[nekross]

Hi all,



I am trying to make a quick compilation of the Funds that have suspended withdrawals. I have taken into account some “old” news plus some other info I got on other Funds. 



The funds I have so far are:



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Bear Stearns Cos: (i) Bear Stearns High-Grade Structured Credit Fund and  (ii) Bear ABS fund



Absolute Capital Management Holdings Ltd: (i) Absolute Capital Yield Strategies Fund and (ii) the Absolute Capital Strategies FundNZD



BNP Paribas SA: (i) Parvest Dynamic ABS,  (ii) BNP Paribas ABS Euribor and (iii) BNP Paribas ABS Eonia funds.



WESTLB MELLON: (i) WestLB Mellon: Compass Fund – ABS Fund



ODDO: (i) ODDO Cash Arbitrages



UNICO: (i) ABS Invest Fund.



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Do you guys know about any other funds that have suspended withdrawals over the last week?

[nekross]

Avendis Suspends Withdrawals From Fund After Subprime Crisis

2007-08-19 09:59 (New York)



By Fergal O'Brien

     Aug. 19 (Bloomberg) -- Avendis Group, which introduced its

first funds five years ago, suspended withdrawals from its

Avendis Enhanced Income Fund until at least October because of

``liquidity pressure'' exacerbated by the subprime credit crisis.

     The hedge fund won't calculate its net asset value until at

least Oct. 1 and all subscriptions and redemptions are suspended

until then, the company said in a statement distributed by the

Regulatory News Service Aug. 17. The fund's assets were valued at

$65.9 million on March 30, according to Bloomberg data.

     ``The fund's portfolio has suffered from liquidity pressure

since the beginning of this year and, as a result, has not been

able to pay redemptions when due,'' Avendis said in the

statement. ``This situation has been exacerbated by the recent

`subprime' related tight credit environment.''

     Avendis joins institutions including BNP Paribas SA,

France's biggest bank, and Bear Stearns Cos. in stopping fund

redemptions. The problems began in the U.S. subprime mortgage

market, when borrowers with poor credit started defaulting on

home loans, and spread globally, sapping demand for corporate

bonds, loans, stocks and commercial paper.

     The European Central Bank, the U.S. Federal Reserve and

other central banks reacted by pumping about $350 billion of

emergency funds into money markets since Aug. 9. The Fed on Aug.

17 unexpectedly cut the discount rate to ease the credit crunch.

     Sarah Fallon and Therese Redmond from Dublin-based Goodbody

Stockbrokers, which sponsored the listing of the fund on the

Irish Stock Exchange, couldn't immediately be reached for comment

when contacted by phone today.

[nekross]

FRANKFURT, Aug 3 (Reuters) - HSBC Investments Deutschland has temporarily frozen its 200 million euro ($274.2 million) ABS fund to protect investors amid a crisis in the U.S. subprime market, a German daily reported on Friday.



The current illiquidity of the market has made pricing impossible, Financial Times Deutschland said on its Web site quoting Leonhard Froehling, who is responsible for institutional clients.



HSBC Investments Deutschland, a unit of HSBC (HSBA.L: Quote, Profile , Research), manages institutional assets and mutual funds.



"To protect investors we have suspended expenditures and withdrawals," HSBC Trinkhaus' company lawyer Norbert Stabenow told the paper.







U.S. subprime mortgages account for about 4 percent of the fund's assets.



Subprime mortgages are the riskiest property loans, often extended to people who have payment difficulties or a bad credit history.



Several major U.S. companies have announced losses from exposure to these subprime loans, sending jitters across the financial services sector.



Earlier on Friday, German mutual funds group Union Investment said it had frozen withdrawals from a fund investing in asset-backed securities, including U.S. subprime mortgages.

[ynot]

"Subprime mortgages are the riskiest property loans, often extended to people who have payment difficulties or a bad credit history."



Thanks, that was a great post adding a tremendous value to the forum.



Y.

[nekross]

ynot: That quote is just part of the reuters article... do not blame me for that.



The point of the post is gathering information about Funds Suspending withdrawals.

[ynot]

"The point of the post is gathering information about Funds Suspending withdrawals"



Sure, but if we end out with a copy/paste frenzy, the thread will quickly become boring!

[Skillionaire]

This thread is a waste of time.  If I knew how to give it a negative rating I would, repeatedly.

[nekross]

Well, it not my favourite topic either. I just wanted to know if there were any funds affected in the last 2-3 days that I was not aware and I took the opportunity to provide a list of the ones affected for those who were interested.



Anyway, seeing the negative comments and ratings perhaps the thread could be move to the trashcan.



Skillionaire:  the ratings are located near the bottom of the page and in the left side.

[apine]

i don't really understand why this thread is a complete waste of time. it is not my favorite thread and certainly, a simple list (with money at stake) would be much better than the whole reuters article. but i feel like people are jumping all over others for either no reason or blowing things out of proportion. if you are not interested in the thread, don't read it. if you want to rate it, do so. even so, i question your assertion that the thread is worthless. not optimal, sure, but i think it is worthwhile to get a handle on what is going on and the amount of money being moved, etc. i don't know where you work and whether you are right in the information flow, but it helps to get my head around the magnitude of things going on.

[Skillionaire]

He's listing $65MM dollar funds and you're wondering why this is a waste of time? 



However, perhaps I was to harsh.  I will simply exercise my right to rate the thread (which nekross, being a good sport, has instructed me how to do). 



[Edit: the "to" above should be "too".  I hate grammatical errors.]