Friday links: money market miasma

10Aug07

The markets may be in turmoil of late, but a visit to this post by Adam Warner at the Daily Options Report will help put things into some perspective.

Market turmoil is putting any number of announced M&A transactions in doubt and arbitrage spreads explode upwards. (via WSJ.com, MarketBeat & Deal Journal)

What do the central banks know, and when did they know it? (via FT Alphaville)

Money markets are feeling the strain and the Fed feels compelled to add liquidity to the system.

Accrued Interest on just what events Ben Bernanke will not allow to happen.

Is this a liquidity crisis or an insolvency crisis? Felix Salmon at Market Movers responds.

All About Alpha writes “So it’s not illiquidity per se that causes financial distress, its a liquidity mis-match between two parties in the financial chain that can cause market dislocations.”

The Epicurean Dealmaker on “phase transitions” and the “deflation of hubris.”

Barry Ritholtz at the Big Picture writes “Advice for Investors: Never buy anything you do not understand. This is a very simple rule, regularly ignored by all too many people.”

David Merkel at the Aleph Blog writes “In a situation like this, simplicity is rewarded. Complexity is always punished in a liquidity crisis.”

Jeremy Siegel says “put some cash to work.” (via TheStreet.com)

De-leveraging and quant model ‘misbheavior.’ (via DealBreaker.com)

More color on the distress felt at Goldman Sachs‘ flagship hedge fund. (via DealBook)

Speaking of distress, Carl Icahn is bringing his money management business public by consolidating with his already-public investment vehicle. (via WSJ.com & DealBook)

MarketBeat and World Beta on how some alternative fund types have done in the downturn.

CXO Advisory Group on research into the characteristics of succesful individual investors.

Jeff Miller at A Dash of Insight wonders “how investors using home-grown systems, as pushed by television advertising, have been doing during this turmoil….”

Who knew? Warren Buffett and A-Rod are buddies. (via NYTimes.com)

Has Abnormal Returns missed a noteworthy post in the investment blogosphere?  Then feel free to drop us a line.

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