Friday, June 22, 2007

Emerging-Market Bonds Fall as Hedge Fund Losses Curb Demand for Securities

(Bloomberg) -- Emerging-market bonds fell on concern
losses at Bear Stearns Cos. hedge funds may reduce demand for the
riskier securities sold by developing nations.

Bear Stearns is proposing a $3.2 billion bailout of a money-
losing hedge fund to prevent creditors from seizing assets,
people with knowledge of the plan said. The fund made bad bets on
so-called collateralized-debt obligations. Asset seizures may
trigger billions of dollars in losses for investors including
hedge funds, pension funds and foreign banks.


Read more at Bloomberg Emerging Markets News

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