Wall Street investment bank hit hard again be worth the hedging instrument.

Just get through the downturn in the performance of the first quarter, the Wall Street investment banking giant will again hit parts of the second quarter may announce a new wave of losses. .The bad news from the real estate investment banking and other securities to offset the loss of hedging instruments. .<P> (Http://finance.) Investment banks on these hedge tools to track real estate securities and leveraged loans, reverse bets market index, it is through this means investment banks over the past year was able to control losses. .But with the collapse of Bear Stearns (now JP Morgan Chase is buying the company), then the market bottomed in mid-March, part of the hedging instrument no longer work began. .Commercial mortgage index (CMBX) and other index briefly rose as high as 50%, while Bank of hedging is obviously a disadvantage of securities gains, and some even fell. .</ P> <P> now, Lehman Brothers Holdings Inc's most costly. .Some analysts estimate that write-downs and ineffective hedges against possible for the double loss of 1.5 billion Lehman Brothers -20 billion. .As of the end of the first quarter, Lehman Brothers book holds about 36.1 billion U.S. dollars on the commercial real estate loans and securities, and 17.8 billion U.S. dollars of leveraged loans. .</ P> <P> UBS analyst Glenn last week chaired a meeting Shore, Lehman Brothers chief financial officer Erin Callan said, some companies hedging instruments have become counterproductive or actually .is losing money. .This situation was unimaginable a few months ago. .Karan introduced Road, when the company's hedging about 70% efficiency; This means that the company lost $ 100 on the one hand, hedging instruments can also be recovered in the other 70 dollars. .</ P> <P> Analysts said Morgan Stanley to be affected may be more than Goldman Sachs Group and Merrill Lynch. .Morgan Stanley write-downs in terms of ineffective hedging loss and probably less than half the expected loss of Lehman Brothers. .As of the end of the first quarter, Morgan Stanley holds a 23.5 billion of commercial real estate securities and 159 billion dollars in leveraged loans. .</ P> <P> meeting last week, Morgan Stanley Chief Financial Officer Cole Mukai Harrell declined to the specific loss for the quarter figures. .But he said the company has sold many of the underlying assets are affected. .</ P> <P> Goldman book on commercial real estate assets is very small. .However, it is 270 billion U.S. dollars of leveraged loans, higher than any other competitors, analysts expect Goldman Sachs hedge this portfolio will be a certain loss. .</ P> <P> of course, may also play a role in the hedge, now included in some of the losses may become proceeds. .Even if that happens, a new round of losses on Wall Street does not help rebuild credibility in risk management, although the amount of loss is lower than previous quarters. .</ P>.