UPDATE 1-Bear Stearns seizes troubled hedge fund's assets

(Reuters) - In a statement on Thursday, Bear Stearns said it "assumed
possession of the assets" securing a $1.3 billion credit
facility provided to the High-Grade Structured Credit
Strategies Fund after the fund was unable to meet a margin
call.




The investment bank said it does not expect any "material
change" in financial exposure as a result of its action. It
said it will continue to pursue an "orderly liquidation" of
assets, and will be in a position to establish appropriate
hedges to protect against future price declines.


Read more at Reuters.com Bonds News

Pound Rally Fools Biggest Traders as Rising Bond Yields Lure Kokusai, Axa

(Bloomberg) -- Investors who listened to the world's
three biggest currency traders and bet against the pound this
year couldn't have been more wrong.

Instead of falling, the U.K. currency has risen 3.8 percent
to a 26-year high of $2.0367. Strategists at Frankfurt-based
Deutsche Bank AG, UBS AG in Zurich and Citigroup Inc. of New York
predicted in December it would trade at $1.96 or lower this year.


Read more at Bloomberg Currencies News

Avon, Commerce Bancorp, Ford, Movie Gallery, Wendy's: U.S. Equity Preview

(Bloomberg) -- The following is a list of companies
whose shares may have unusual price changes in U.S. exchanges
today. This preview includes news that broke after exchanges
closed yesterday. Stock symbols are in parentheses after company
names. Share prices are as of 9 a.m. in New York.

American Capital Strategies Ltd. (ACAS US) rose $1.70, or 4
percent, to $44.70 in trading before U.S. exchanges opened. The
specialty finance company will replace Dollar General Corp. (DG
US) in the Standard & Poor's 500 Index, S&P said in a statement.


Read more at Bloomberg Stocks News

U.S. lawmaker: Bear Stearns woes won't cause meltdown

(Reuters) - Bear Stearns, the fifth-largest U.S. investment bank, said on Friday it would loan up to $3.2 billion to the High-Grade Structured Credit Strategies Fund, which suffered big losses on investments in the repackaged subprime mortgage loan market when homeowner defaults started rising.







Read more at Reuters.com Bonds News

U.S. monitors market liquidity after fund bailout

(Reuters) - The High-Grade Structured Credit Strategies Fund suffered
big losses after making bad bets in the repackaged subprime
mortgage loan market when homeowner defaults started rising.
Concerns have been raised about other funds that invested in
similar bonds linked to subprime mortgages, which are known as
a collateralized debt obligations .




"I couldn't say that it was the tip of the iceberg," Dugan
told reporters when asked if the Bear Stearns fund indicated
similar problems may be on the horizon.


Read more at Reuters.com Bonds News

Bear Stearns Plans $3.2 Billion Rescue for Hedge Fund to Prevent Fire Sale

(Bloomberg) -- Bear Stearns Cos. plans to take on
$3.2 billion of loans to stop creditors from seizing assets of
one of its money-losing hedge funds in the biggest fund bailout
since 1998, people with knowledge of the proposal said.

The firm told lenders to the High-Grade Structured Credit
Strategies Fund yesterday that it would assume their loans, said
the people, who declined to be named because the plan is
confidential. The New York-based firm stepped in after Merrill
Lynch & Co. took securities that backed $850 million in credit
lines to two Bear Stearns funds and put them up for sale.
JPMorgan Chase & Co. and Lehman Brothers Holdings Inc. also
indicated they may take over collateral for loans they provided.


Read more at Bloomberg Bonds News

Investors Should Increase Russian Share Holdings, Morgan Stanley Says

(Bloomberg) -- Investors should buy Russian stocks
such as OAO Mobile TeleSystems because the equity market has
dropped to a level that is ``more appropriate given high
political- and corporate-governance risk,'' Morgan Stanley said.

Strategists led by Jonathan Garner, London-based head of
global emerging-markets strategy, raised their recommendation on
Russian stocks to ``equal weight'' from ``underweight,'' which
means that investors should hold the country's shares in line
with the country's weighting in international indexes.


Read more at Bloomberg Stocks News

Bull-Dog Sauce, Toys R Us Japan, Heiwa Real Estate; Japanese Stock Preview

(Bloomberg) -- The following stocks may move in
Japanese markets tomorrow. Prices are as of the close of trading.
Statements were released after the close. Stock symbols are in
parentheses.

Bull-Dog Sauce Co. (2804 JT): The Worcestershire sauce
maker's management rejected a takeover bid by Steel Partners
Japan Strategic Fund L.P., a fund headed by U.S. investor Warren
Lichtenstein. Bull-Dog will seek shareholder approval at a June
24 meeting to issue equity warrants as an anti-takeover measure.
The stock added 5 yen, or 0.3 percent, to 1,655.


Read more at Bloomberg Stocks News