The New York Post reports that a Bear Stearns analyst issued a report that said Ceres Capital Partners' Victoria Finance fund, a so-called structured investment vehicle, was liquidating. The reports turned out to be erroneous. Ouch! Bear retracted the report. Still, there's a lot of fear stalking the commercial paper market. Analysts and even regulators want to know more about the exposure of top banks. In this sort of environment, rumors carry more weight, and Ceres hasn't been able to stop the talk. Some say the fund was aiming to sell a large batch of more highly rated bonds from Victoria Finance's portfolio, with limited success, even as it was making sure the Bear report was pulled. Make of that what you will. It's tough out there.    

For more:
- here's the New York Post article


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