Cheyne Capital Management Liquidate Cheyne Finance Assets

Cheyne Finance has said that it will go through a restructure after the value of its investment fell so much that Cheyne Capital had to forced it to start selling assets.

Cheyne Capital Management is the British hedge fund that manages Cheyne Finance, which is a structured investment vehicle (SIV).

Standard & Poor’s have downgraded Cheyne Finance to A- from AAA after Cheyne Finance broke its major capital loss test and had to liquidate assets to repay outstanding debt.

Cheyne Capital and Cheyne Finance have both been hit as a results of a credit crunch that began in the US sub prime housing and mortgage market and has ending up affecting every single area of the stock market and financial markets.

“Market conditions remain difficult, with asset prices continuing to be marked lower,” Cheyne Finance said.

“We have been actively selling assets and reducing the size of the portfolio, and have raised sufficient cash to cover projected liabilities for the next few months,”

Market analyst Sam Kirtley of The Gold Prices Newsletter thinks this may only just be the beginning, “We see a large real estate crash coming and major recession in the USA. This storm is far from over so expect more casualties.”

Do you think either Cheyne Capital or Cheyne Finance will go bankrupt?

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