What's going on across the pond?

[Lee Common]

[Lee Common]

John Mauldin's
"Outside the Box"

Can the credit crisis get any worse? In this week's Outside the Box my London partner Niels Jensen shows that it indeed can. Banks, and mainly European banks, have large exposure to emerging market debt of all types through both sovereign, corporate and individual loans. Just as banks have had to write down large losses from the subprime crisis and other related problems, next will come a wave of potential losses from yet another source. Niels then goes on to give us a look the size and problems with hedge fund deleveraging. Altogether, this is a very interesting letter and one that is written from a non-US point of view that I think you will find instructive.
Niels Jensen is Managing Partner of Absolute Return Partners based in London, which is a boutique alternative investment firm (www.arpllp.com). You can write Niels at [email protected] if you like with your comments and questions.