Bear Stearns funds have “effectively no value”
Just posted this on NP:
Holy crap. So much for collateral…
“The preliminary estimates show there is effectively no value left for the investors in the Enhanced Leverage Fund and very little value left for the investors in the High-Grade Fund as of June 30, 2007,” according to the letter. A copy of the letter was obtained by Reuters.
Separately, a source familiar with the funds said the net asset value for the High-Grade Structured Credit Strategies Fund is about 9 cents on the dollar.
Edit: More from Bloomberg
It seems they conveniently had enough left after selling assets to pay the parent back the loan it made. Nice. I almost feel sorry for the investors. Not! I do think this is a wake up call. Good bye high yield credit spreads.