Tuesday, November 24, 2015

Stung by Oil, Distressed-Debt Traders See Worst Losses Since '08


Stung by Oil, Distressed-Debt Traders See Worst Losses Since '08
 Simone Foxman
 Jodi Xu Klein

November 24, 2015 — 2:52 AM CET Updated on November 24, 2015 — 12:58 PM CET

Knighthead, Candlewood, Mudrick hedge funds under pressure `It wasn’t just energy,' one manager says as funds fall 5%

It’s mid-November, but for investors who trade in the debt of distressed companies, the year’s already done -- and they lost.

Hedge funds that specialize in the debt are grappling with their worst declines in seven years. Funds managed by Knighthead Capital Management, Candlewood Investment Group, Mudrick Capital Management and Archview Investment Group all posted losses through October. And year-end bonuses at Wall Street desks that trade distressed debt could be slashed by a quarter, Options Group said.

After six years of easy-money central-bank policies kept over-leveraged companies afloat and left scant opportunities for traders who profit off the market’s scrap heaps, a rout in commodities prices in 2014 presented what had seemed like a perfect chance to buy again. Instead, those prices only declined further this year, causing the debt of everyone from oil drillers to coal miners to fall deeper into distress. As the losses intensified, gun-shy investors pulled back from almost anything that smacked of risk, spreading the losses to industries from retail to technology.

"Most distressed situations have not worked out in 2015,” said David Tawil, president of distressed hedge fund Maglan Capital, which lost 5.4 percent in the first 10 months of 2015. “It wasn’t just energy. It was anything with loads of leveraged debt on it."

Distressed hedge funds dropped 5 percent in 2015 through October, putting them on pace for their worst year since 2008, when they lost 25 percent. They’re lagging behind hedge funds across indexes, which are flat for the year, according to Chicago-based data provider Hedge Fund Research Inc.

Rough November

November isn’t looking like it will be much better. A Bank of America Merrill Lynch index of distressed debt is down almost 8 percent this month as the average price of bonds in the benchmark dropped to 57 cents on the dollar, from as high as 75.6 cents in February.

Mudrick Capital lost 16 percent this year through Oct. 31 in its main fund, according to a person with knowledge of its returns. A $1 billion special-situations fund managed by Candlewood is down 11 percent, according to a document obtained by Bloomberg. And Knighthead Capital, which manages $3.4 billion, lost 8.7 percent in its main fund, according to performance updates.

Gaia Portal: Halifaxes are pressed into service as Hue-manity rises

Halifaxes are pressed into service as Hue-manity rises
by √ČirePort

Halifaxes are pressed into service as Hue-manity rises.

Segregations are recognized no more.

Unity of operation is employed.

Maters of Light service come in assistance.

√ČirePort | November 24, 2015 at 06:06 | Categories: Uncategorized | URL: http://wp.me/p2sFUY-w8

As we shift - 5 ways to be actively awake

Where you fall along the “scale of fear” probably has little, if anything, to do with the current “terrorism threat” level.  That is a good sign.  It indicates how we are separating from the matrix.

I heard a recording the other day from someone who watches trends online after large “expected events” (think 12/21/12) that fail to happen.  He said he’d been doing it since Y2K.

After this most recent expected “Ascension Event” last September, he saw a shift.  Instead of anger, frustration and “why”?, people asked “what the “powers that were” were doing behind our backs, while we were focused elsewhere?” This is major.  It’s happening everywhere now.  As awareness grows, we collectively pull and push each other to new levels. 

I flew last weekend.  I carry a water bottle when I do, filling it up at the gate.  This time, I forgot to empty it before getting in the TSA line.  What the agent then “explained”, after patting me down once, is that I’d have to accompany her back to the other side, she would empty out the water there, and then I’d get in line and be patted down a second time once I got through.  I was not permitted to touch the bottle myself.  I was with my mom at the time, and she was waiting for me in a wheelchair.  She, btw, had already also been patted down, after going through the body scanner.

I looked at the agent in disbelief.  I took out my passport, held it up high and said, sort of loudly, “I am a citizen of this country. I travel with my passport to ease the process for us all and yet still I am being forced to jump through ridiculous hoops just to get back home and have Thanksgiving with my mother.  Something is very wrong with this picture.  I am not a terror threat.  This is insane.”

The agent walked with me out of the area, (away from her supervisor), and as she dumped out the half liter of water said, very quietly “I agree with you.  This is stupid.  I’m not going to pat you down or make you stand in line.  Come on.”  We then walked back and joined my mother.

We have to speak up.  Being awake and only talking to other awake people is fun perhaps, but really a waste of time.  I know when you first wake up you feel sort of self-righteous about enlightening everyone.  But that is not your job.  Your job is to live in a woken up state.  Let others see you live with eyes wide open.  They will notice.

Witnessing your alert behavior will have more of an impact on someone than will a lecture from you.  Who listens anyway?  It’s time to be ACTIVELY AWAKE.

Here are some suggestions that may spark others…

1.     Speak up.  Don’t just grumble on the inside about the insanity when it impacts your life.  Even if the only person listening is the one paid to tell you your insurance rates just went up – say it.  There are no small ripples.

2.    Follow your gut.  Inspiration comes only in the now moment.  This is not to be ignored, it is to be heeded.  As you move to your own inspired song, others will witness.

3.    Smile.  This is your creation.  Look around and remember appreciation. The cumulative effect of joy is exponential.

4.    Look at each other. You are not here alone.  You didn’t come to do this by yourself.  We are waiting to see your light – it’s there in your eyes.  Let us see it.

5.    Choose empowered.  In every circumstance, opt for sovereignty.  Refuse to follow the herd.  Consider every option. This is your life you’re building.  Choose deliberately.  Make it a masterpiece.

There is so much to be gained from collaboration.  What the powers that were have been afraid of always is our numbers.  This is why every move they make is an attempt to separate us.

What they don’t see is how those same actions are like the glue that binds us together.  Once this bond is forged, it is unbreakable.

We will come to comprehend our unity through these blatant attempts that display polarity.  As we shift, it is our humanity that rises above every disagreement and difference.  WE ARE MAGNIFICENT IN OUR UNIQUENESS AND UNIQUE IN OUR MAGNIFICENCE. 

We are the ones we are waiting for.

Thank you for showing up.

With absolute love,

PS – My newsletter tells the story of the conversations I’m having with all sorts of beings from other planets and places… Sign up here.  

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