Dire warnings from structured credit hedge fund... interesting read

[jonnyRockets]

Here's the article:

New York Structured Credit Hedge Fund Plummets 40% | FINalternatives

I don't know about all of you, but I tend to take notice when a player this big or this 'inside' is this worried about something.

Any thoughts?

 

[Cavalry Trader]

Here's the article:

New York Structured Credit Hedge Fund Plummets 40% | FINalternatives

I don't know about all of you, but I tend to take notice when a player this big or this 'inside' is this worried about something.

Any thoughts?

From reading this it looks as though most of their portfolio is in one assett class which has not performed, and they are trying to make excuses. I think they are only stating what most people believe that things are tough.

In UK I heard a statement yesterday that consumer credit is currently running at 164% of annual salaries, couple this with the fact that one card company has just cancelled 160,000 credit agreements of high risk customers - I think these could be some serious indicators that the pack of cards may start to tumble in UK like US

CT