Sunday links: hidden risks

14Dec08

Why “sophisticated investors” are taken in by scam artists.  (WSJ.com, NYTimes.com, Clusterstock)

Shouldn’t a Madoff-like scheme have been identified by now?  (NYTimes.com, WSJ.com, Big Picture)

“Is there a way to know whether a money manager’s returns are too good to be true?”  (The Big Money)

A graphic look at Madoff’s returns.  (Clusterstock, Moomin Valley, NakedShorts)

The market still wants an auto bailout.  (The Balance Sheet)

Hidden risks in bond funds showed up in the credit crisis.  (NYTimes.com)

A huge divergence between stock and bond returns.  (MarketBeat)

Hedging vs. selling a long position.  (InVivoAnalytics.com)

When will the arbitrageurs return? A look across the financial markets at the moment reveals all sorts of potential anomalies that are not being exploited.”  (Economist.com)

The muni markets are lagging the broader bond market.  (TraderFeed)

SAC allows early redemptions, while Citadel halts redemptions.  (Dealbook, ibid also NakedShorts)

“Basic rule: buybacks don’t count as shareholder return if they don’t reduce the share count.”  (Ultimi Barbarorum)

“Securitization is the process of transforming low-information assets, like corporate debt, into high-information assets, like opaque CDO-squareds. “(Market Movers)

What relationship is there between subprime and the current crisis?  (Baseline Scenario)

In spite of lower gasoline prices, Americans continue to cut back on miles driven.  (Real Time Economics)

Government actions and interventions caused, prolonged, and worsened the financial crisis.”  (Econbrowser)

Are you curious what other bloggers are saying about Abnormal Returns? So are we. Feel free to check out a compilation of reviews.

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