Aug. 9 (Bloomberg) -- BNP Paribas SA, France's biggest bank, said it froze three asset-backed securities funds because it's no longer possible to ``fairly'' value their holdings, as concern over U.S. subprime mortgage losses roils credit markets. ``The complete absence of liquidity in certain market segments of the U.S. securitization market has made it impossible to value certain assets fairly regardless of their quality or credit rating,'' the Paris-based company said in an e-mailed statement today. Late payments on U.S. subprime mortgages to borrowers with poor credit histories are at the highest since 2002, driving down the value of bonds backed by home loans and causing turmoil in credit markets. BNP Paribas will temporarily suspend the calculation of net value for the funds, and halt redemptions and new investments. The funds affected are called Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia. The French bank said it would allow redemptions and valuations to resume as soon as liquidity returned to the market. http://www.bloomberg.com/apps/news?pid=20601087&sid=adwYyyAfzf40&refer=home
Another prove of how the U.S. INVESTMENTBANKS implemented their MEGA-GLOBAL-HEDGE : sell the BS to banks worldwide and minimize your overall risk to "acceptable" levels ! Ha, ha, ha...great BNP - you have been screwed perfectly by the U.S. BOYZ ! Hats off ! Once again the U.S. BOYZ proved to be smarter then their European counterparts ! And not only their European counterparts ! Smarter then the Australians ( Basis Capital ), Japanese ( Mizuho ) and Taiwanese ( Taiwan Life Insurance Co. ) ! Excellent job, BOYZ !!!
Oooopsss....forgot about BEAR STEARNS...sorry... In other words you wanted to recall that we are talking statistically about a normal "idiot" distribution ?? Your point !!