Comments on: A Saudi leading indicator of market craziness? http://www.dinocrat.com/archives/2008/11/21/a-saudi-leading-indicator-of-market-craziness/ Thu, 09 Feb 2012 11:49:05 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Doug http://www.dinocrat.com/archives/2008/11/21/a-saudi-leading-indicator-of-market-craziness/#comment-314748 Doug Fri, 21 Nov 2008 03:22:18 +0000 http://www.dinocrat.com/?p=6971#comment-314748 Institutional investors are all being forced to liquidate positions. Hedge funds are facing huge redemptions, even high yield and bank loan mutual funds are getting hit on the 200% coverage of leverage requirements, as NAV's have dropped significantly as performing bank loans are trading in the low 70's. Without temporary relief from the Investment Company Act of 1940, forced selling will continue and the "liquidity black hole" destroys more value. Turing Word: borrow - very fitting Institutional investors are all being forced to liquidate positions.

Hedge funds are facing huge redemptions, even high yield and bank loan mutual funds are getting hit on the 200% coverage of leverage requirements, as NAV’s have dropped significantly as performing bank loans are trading in the low 70′s.

Without temporary relief from the Investment Company Act of 1940, forced selling will continue and the “liquidity black hole” destroys more value.

Turing Word: borrow – very fitting

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