Signs that this commodity bubble w/ high oil and food prices will burst soon ??
05-23-2008, 03:41 AM
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Signs that this commodity bubble w/ high oil and food prices will burst soon ??
Big commodities hedge fund Brevan Howard decides to go public. Back in the peak of the real estate boom mortgage companies were cashing out and being bought out by big banks. During the peak of the M&A boom private equity firms like KKR were going public... Now commodities funds...
Could be they see the commodities bubble can't go on much longer and decided to cash in their chips?
Brevan Howard Raises $1 Billion in Fund Initial Public Offering
posted on Friday 23 May 2008 09:17 BST
From Bloomberg - see full story
Bloomberg reports: Brevan Howard Asset Management LLP, a U.K. hedge fund manager, raised $1 billion in an initial public offering of a fund, double its original target.
The firm sold 70.8 million shares of BH Global Ltd., London-based Brevan Howard said in a Regulatory News Service statement today. The shares were priced at $10, 10 euros ($15.70) and 10 pounds ($19.80) each, the company said.
Brevan Howard raised about $1 billion in March 2007 with an initial public offering in BH Macro Ltd., the first listing of a hedge fund on the London exchange. The company was founded in 2002 by Alan Howard, former head of proprietary interest-rate trading at Credit Suisse Group. Share listings mean hedge funds don't have to worry about investors pulling cash through redemptions.
Could be they see the commodities bubble can't go on much longer and decided to cash in their chips?
Brevan Howard Raises $1 Billion in Fund Initial Public Offering
posted on Friday 23 May 2008 09:17 BST
From Bloomberg - see full story
Bloomberg reports: Brevan Howard Asset Management LLP, a U.K. hedge fund manager, raised $1 billion in an initial public offering of a fund, double its original target.
The firm sold 70.8 million shares of BH Global Ltd., London-based Brevan Howard said in a Regulatory News Service statement today. The shares were priced at $10, 10 euros ($15.70) and 10 pounds ($19.80) each, the company said.
Brevan Howard raised about $1 billion in March 2007 with an initial public offering in BH Macro Ltd., the first listing of a hedge fund on the London exchange. The company was founded in 2002 by Alan Howard, former head of proprietary interest-rate trading at Credit Suisse Group. Share listings mean hedge funds don't have to worry about investors pulling cash through redemptions.
05-23-2008, 04:03 AM
#2
any bubble burst will likely not see retail prices drop much
because wholesale end-product producer's margins are getting hammered right now due to high commodity prices, either these wholesalers (refineries, etc) will go under and decrease supply, or will try and keep prices steady and increase margins to stay in business. Not to mention the fact that state-owned companies worldwide are dominant and it is economically better for commodity-producing countries to simply limit supply and keep prices high instead of flooding the market. For instance, Iran is busy hoarding crude oil in at least 20 supertankers anchored to one of their islands.
Unless a worldwide depression hits, I think the era of <$4 gas is history. The real danger will come this winter as people in cold climates will not be able to heat their homes.
Unless a worldwide depression hits, I think the era of <$4 gas is history. The real danger will come this winter as people in cold climates will not be able to heat their homes.
05-23-2008, 04:05 AM
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Even most OPEC officials agree that based on fundamentals oil should be ~ $65-80 a barrel
I disagree, I think it will return to more normal levels in 18 months to 2 years...
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