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BNP Paribas says 3 funds' value impacted by subprime
Reuters ^ | 8/9/2007

Posted on 08/09/2007 1:11:31 AM PDT by bruinbirdman

French bank BNP Paribas (BNPP.PA: Quote, Profile , Research) said on Thursday that problems in the U.S. subprime mortgage sector meant it had decided to suspend temporarily the calculation of the value of three of its funds.

BNP Paribas Investment Partners said in a statement that the decision affected its Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia funds.

"The complete evaporation of liquidity in certain market segments of the U.S. securitisation market has made it impossible to value certain assets fairly regardless of their quality or credit rating," it said.

"In order to protect the interests and ensure the equal treatment of our investors, during these exceptional times, BNP Paribas Investment Partners has decided to temporarily suspend the calculation of the net asset value as well as subscriptions/redemptions, in strict compliance with regulations, for these funds," it added.

Subprime mortgages are the riskiest property loans, often extended to people who have payment difficulties or a bad credit history.

Several major U.S. companies have announced losses from exposure to these subprime loans, sending jitters across the financial services sector.


TOPICS: Business/Economy; Culture/Society; Miscellaneous; News/Current Events
KEYWORDS:
Hysteria reigns.

"BNP Paribas top 2006 M&A adviser in France [the company gave $1.5B in kickbacks to Saddam's gov't]"

This is the "credit market" not equities.

1 posted on 08/09/2007 1:11:35 AM PDT by bruinbirdman
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BNP Paribas Freezes Three Funds Amid Subprime Concern
2 posted on 08/09/2007 1:15:20 AM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
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BNP Paribas Investment Partners Press Release

BNP Paribas Investment Partners temporaly suspends the calculation of the Net Asset Value of the following funds : Parvest Dynamic ABS, BNP Paribas ABS EURIBOR and BNP Paribas ABS EONIA

Paris, 9th Aug. 2007

The complete evaporation of liquidity in certain market segments of the US securitisation market has made it impossible to value certain assets fairly regardless of their quality or credit rating. The situation is such that it is no longer possible to value fairly the underlying US ABS assets in the three above-mentioned funds. We are therefore unable to calculate a reliable net asset value (“NAV”) for the funds.

In order to protect the interests and ensure the equal treatment of our investors, during these exceptional times, BNP Paribas Investment Partners has decided to temporarily suspend the calculation of the net asset value as well as subscriptions/redemptions, in strict compliance with regulations, for the following funds:

--Parvest Dynamic ABS effective 7 August 2007, 3pm (Luxembourg time)

--BNP Paribas ABS Euribor and BNP Paribas ABS Eonia effective 7 August 2007, 1pm (Paris time)

The valuation of these funds and the issue/redemption process will resume as soon as liquidity returns to the market allowing NAV to be calculated.

In the continued absence of liquidity, additional information on the envisaged measures will be communicated to investors in these funds within one month of today.

3 posted on 08/09/2007 1:24:12 AM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
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To: bruinbirdman
What? No one trusts a Frwaaaheeench investment firm? Is someone saying a Frwaaaheeecn mans' promise isn't worth the paper its printed on? Who ever could of given the world that idea? Naturally, it's the fault of those gun owning, trail home living Americans.
4 posted on 08/09/2007 2:48:35 AM PDT by Leisler (Just be glad you're not getting all the Government you pay for.)
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