tenacious thursday, page-14

what a financial mess. below two news items relating to kkr and aust's basis capital.

http://www.cnbc.com/id/20278517

An affiliate of powerful leveraged buyout firm Kohlberg Kravis Roberts & Co. said Wednesday it will lose about $40 million from selling $5.1 billion in residential mortgages and warned an additional $200 million hit could be coming.




http://www.bloomberg.com/apps/news?pid=20601081&sid=aEe5uFFGLKHk

Basis Capital Tells Investors Loss May Exceed 80%

Basis Capital Fund Management Ltd. told investors losses at one of its hedge funds may exceed 80 percent as the U.S. subprime mortgage rout prompted creditors to force the Sydney-based company to sell assets.

Basis Capital is unable to ``accurately estimate'' the value of units in its Yield Fund, the hedge fund said today in a letter sent to investors and obtained by Bloomberg News. The losses have worsened since a month ago, when it said the fund may decline more than 50 percent. The firm managed $1 billion in March.