> Hedge Fund Jane Street Suffers Loss of About $15 Billion Following Troubles at Situational AwarenessPrevious | First | 1 | Last | Next
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Hedge Fund Jane Street Suffers Loss of About $15 Billion Following Troubles at Situational Awareness
Jane Street, the powerhouse Wall Street trading firm, lost about $15 billion in July partly due to the troubles at hedge fund Situational Awareness, according to people familiar with the matter.
It was the firm’s worst monthly loss ever, one of the people said. Jane Street is still enjoying its best trading year with revenues of more than $40 billion through July, the person said, but the losses are surprising for a firm known for its risk management.
https://www.wsj.com/finance/investing/j … s-9be40c51
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Re: Hedge Fund Jane Street Suffers Loss of About $15 Billion Following Troubles at Situational Awareness
There’s another article where they’re having to raise money in the private markets to avoid disclosure.
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Re: Hedge Fund Jane Street Suffers Loss of About $15 Billion Following Troubles at Situational Awareness
wrote:
There’s another article where they’re having to raise money in the private markets to avoid disclosure.
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Re: Hedge Fund Jane Street Suffers Loss of About $15 Billion Following Troubles at Situational Awareness
Here’s the article:
The par-weighted average spread on the old bonds was +152bps. While it wouldn’t be weird to expect new bonds to come maybe a few basis points back versus the existing curve, the average spread on the new bonds was more than double, at +311bps. This looks wild. If we assume that Jane Street could have issued a set of public benchmark bonds — which would require it to continue reporting the oodles of billions it was making every quarter — at, say, Treasuries +165bps, how much more has Jane Street locked in pay by issuing these new, special, secrecy-friendly bonds instead? Just multiplying the difference in credit spreads between new and old bonds (311bps — 165bps = 146bps), by the size of the new issuance ($14.625bn) gets us to an answer of $214mn. And that’s $214mn per annum.
https://www.ft.com/content/28a51284-98c … 40d265687f
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