By Michelle Celarier
As Absolute Return was going to press, another hedge fund
crisis appeared to have been averted. By putting up $3.2
billion of its own capital, Bear Stearns moved to save one of
its own funds, not to mention its bond trading reputation. It
also kept the already nervous credit markets from collapsing.
Given that the underlying problems in the subprime market are
unlikely to disappear and could spread, it seems a little like
sticking a finger in the dike.
The CDO market - which was...