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another one bites the dustCarlyle Capital Corporation The US mortgage-backed bond fund will collapse if, as expected, its lenders seize its remaining assets.

strictly speaking this is not a hedge fund but its defintiely newsworthy

QuoteOriginally posted by: daveangelstrictly speaking this is not a hedge fund but its defintiely newsworthyIndeed.Quote"Hedge funds that have borrowed from banks against the security of mortgage-backed debt could be about to see their assets sucked into the banking system and their businesses vanish." A $21billion loss is definitely newsworthy.

QuoteA $21billion loss is definitely newsworthy.Actually the loss to the fund investors is limited to their equity investment. the loss to the lenders is probably very little. I don't think the securities are trading at zero.

QuoteOriginally posted by: daveangelQuoteA $21billion loss is definitely newsworthy.Actually the loss to the fund investors is limited to their equity investment. the loss to the lenders is probably very little. I don't think the securities are trading at zero.They were leveraged 31 times david. Please, read a newspaper.

QuoteThey were leveraged 31 times david. Please, read a newspaper.Looks like you are overreliant on newspapers as your main source of information. if you bothered to do an any analysis you would have realised that Carlyle Capital Corp has extensive information about their portfolio. The fund was invested in Fannie Mae and Freddie Mac paper backed by conforming mortgages. the coupon on the paper is reset monthly at Libor plus a spread. essentially it was a money market instrument. Do you think that $21.7billion of Freddie Mac and Fannie Mae has been written down to zero ?

QuoteOriginally posted by: daveangelQuoteThey were leveraged 31 times david. Please, read a newspaper.Looks like you are overreliant on newspapers as your main source of information. if you bothered to do an any analysis you would have realised that Carlyle Capital Corp has extensive information about their portfolio. The fund was invested in Fannie Mae and Freddie Mac paper backed by conforming mortgages. the coupon on the paper is reset monthly at Libor plus a spread. essentially it was a money market instrument. Do you think that $21.7billion of Freddie Mac and Fannie Mae has been written down to zero ?Oh you mean like here, huh.QuoteCarlyle Capital Corporation LimitedFor Immediate Release03/12/08Rowland Hunt+1-212-813-4707Carlyle Capital Corporation Unable To Reach Agreement With Lenders; Lenders Likely to Take Possession of Remaining AssetsNew York, NY – Carlyle Capital Corporation Limited (Euronext Amsterdam ticker symbol: CCC; ISIN: GG00B1VYV826) (the Company) today announced that, although it has been working diligently with its lenders, the Company has not been able to reach a mutually beneficial agreement to stabilize its financing. The Company expects that its lenders will promptly take possession of substantially all of the Company’s remaining assets.The only assets held in the Company’s portfolio as of today are U.S. government agency AAA-rated residential mortgage-backed securities (RMBS). During the last seven business days, the Company received margin calls in excess of $400 million. As the Company was unable to pay these margin calls, its lenders proceeded to foreclose on the RMBS collateral. In total, through March 12, the Company has defaulted on approximately $16.6 billion of its indebtedness. The remaining indebtedness is expected soon to go into default.The Company explored a variety of proposals with its lenders in an attempt to refinance its portfolio on sustainable terms. The Carlyle Group participated actively in those negotiations and was prepared to provide substantial additional capital if a successful refinancing could be achieved. Negotiations deteriorated late on March 12 when, among other things, the pricing service utilized by certain lenders reported a drop in the value of the RMBS collateral that is expected to result in additional margin calls tomorrow of approximately $97.5 million.Overall, it has become apparent to the Company that the basis on which lenders are willing to provide financing against the Company’s collateral has changed so substantially that a successful refinancing is not possible.* * * All I know is that I could have done a much better job of portfolio management and asset allocation than these clowns.Have you ever heard of due diligence, dave?

I don't think it says that the entire portfolio has been written down to zero ... or does it ? this fund was designed to generate a large "dividend" for the equity holders ... and to do that they need leverage. anyone who signed for this knew what they were doing.