Cold Snap: What’s a “frozen” hedge fund asset really worth?
Jan 3rd, 2010 | Filed under: Hedge Fund Operations and Risk Management, Media Coverage of Hedge Funds, Today's Post
In spite of the obvious analogies between the current frigid weather in the US Northeast, we at AllAboutAlpha.com have long been intrigued by how one puts a dollar figure on a frozen asset.
Indeed, one thing no one has seemingly ever figured out (and conveyed publicly, to our knowledge) is what the assets frozen by Lehman Brothers’ 2008 bankruptcy might have been worth had hedge funds and others actually been able to take them out and sell them.
In a global market where everyone was tripping over each other for the exits, what would securities that on the books might have been worth something before September 15, 2008 were, at the time of Lehman’s failing, basically worth nothing? More…
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