3 replies to this topic

[OEXCHAOS]

Regarding Semi's thread below, I found this on Credit Flux (I have no idea of the credibility)

"Axa IM shores up money market funds invested in subprime News Digest, 3 August 2007Axa Investment Managers says it is investing its own money to shore up two money market funds that are invested in subprime assets, the Financial Times reports. Net assets in the funds fell by 13.45% and 12.6% between 18 and 19 July, the paper reports.

The article reports Axa as saying it will match redemptions with its own investments in the funds, while allowing all investors to sell their holdings if they wish. Axa says the funds are not invested in subprime investments that have recently been downgraded, it adds.

Axa IM's chief executuve, Dominuqe Carrel-Billiard is quoted as saying it is a temporary problem for the funds and markets. The funds are Axa IM Fixed Income Investment Strategies US Libor Plus and Axa World US LIibor Plus. About 41% of the funds, which account for about $712 million under management, were invested in subprime, the FT reports."


http://www.creditflu...in subprime.htm



This is more credible:


http://www.ft.com/cm...00779fd2ac.html


I find it fascinating that this is old news and yet I never heard anything about this. Funny that.


IT's not yet grasped. There could be more fall out. Get with your broker and make sure you are moved out of any money market fund that isn't US Govt backed. If you've got size, buy some treasuries. If there are hurdles to transferring, just liquidate the fund and skip the interest for a little bit. Just my opinion.





Best,

Mark

[Cirrus]

There hasn't been financial risk in the system like this for a long time....and yet the major indexes are mid single digits off of their highs. I still say that the Chinese will be buying US stocks with their dollars instead of bonds in the future. Stocks should be getting wiped out this week and the declines aren't very big from a historical standpoint. The breadth has traded at levels which should have produced % declines that are well in excess of what has been seen.

[sam]

Thanks for the reminder. After reading the caveat thread below i went and checked on my MM account over at TDAmeritrade. I had forgotten all about mine. When I got the prospectus a few months ago and there was talk about MM fund here a while back and i checked my account and i was in a Primary Fund class R - which holds govts, commercial paper, lots of stuff. I IMMEDIATELY called TDA to have them switch the MM fund to a US Govt Fund class R. .....a week later i checked back and they hadnt yet moved it over but i was assured that 'John' would take care of it personally. Since i was already spooked from it not being transferred the first time, i took notes, names, times and the confirmation number. Guess what i found? (Anyone got the number for the NASD?)

[SemiBizz]

I have completely lost my appetite for trading the equity market. I am going to Defcon 5... capital preservation mode... It's pretty obvious at least to me what is going on here, when these mkts move straight up and straight down like they are, the only benefactors are the brokers. They have all the computers, cash, ability to shut mkts down etc. I'm done with trading for now. Getting my cash out and moving into safe harbor