Soundness

From the Financial Times (one of the few newspapers worth paying for!): Australian hedge fund ‘tightens gate’ on withdrawals.

An Australian hedge fund manager has issued a pre-emptive warning in response to the widening US subprime lending turmoil. The move came as some hedge fund investors warned that more funds were likely to limit redemptions to prevent forced sales of illiquid assets at low prices, but that the true scale of the problem might not become clear until September, reports the FT.

In a letter sent this week to investors, Basis said it had been hit by “indiscriminate” repricing of  “otherwise fundamentally sound collateral” amid fresh fears of US subprime lending turmoil. It said it had deliberately avoided the worst-hit 2006 subprime loans.

If it's so fuckin' sound, how about returning the investors' collateral?

Ha ha ha hahahahahahhahhhh!!!