Current news for this fund:
Rhinebridge Plc (IKB) - SIV (with sub-prime MBS exposure)
Count of distinct funds: 1
This EUR $2.3 billion (at peak) conduit/SIV fund parented by IKB Deutsche Industriebank AG was put into receivership on or about October 23, 2007, which qualifies it for "implosion" in our book.
The first article, from October 18, points out that the fund had breached a major covenant:
Even before that, the IKB fund was distressed:
In August, Rhinebridge had to sell $176 million of its assets to cover obligations, and as much $320 billion of holdings by SIVs worldwide may be dumped if the market doesn't improve.
Rhinebridge was then put into receivership about a week later. A few days later, the receiver (Deloitte) stated that the fund's assets would not be sold off "fire-sale style"; though it isn't clear how much delaying a sale will actually help. Maybe they're waiting for professor Paulson's fantastic M-LEC to save the day?
Interestingly, Rhinebridge was formed only in April of this year, and this press release sings the praises of SIV-based structured finance at the time. It all seems so quaint now:
To which we can only reply: where do we sign up?!
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Important: This fund is on our list of hedge funds that have "imploded" (see also ailing lenders). However, please note that "imploded" is a somewhat subjective. The "imploded" list contains hedge funds (or other unregulated and autonomous speculative investment funds) which have gone through some sort of permanent adverse change. This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid mark-downs in net asset value; or abnormal "bail-out" by corporate parents or peers in order to avoid write-downs and provide liquidity. The funds are of any type and sector.