Hedge funds we know what basis you are writing that statement on (I'm extremely good mates with the BDM's there and I feel for them, even they are leveraged up into the funds, they had no idea themselves, it wasn't like they knew the were flogging pure junk like Milliken, this was top rating product, they just didn't know the PM's must have had their fingers crossed under the tables I guess)....the Local Councils one is different- You're not referring to any fund manager in particular are you, you know, a Collins st one? I know the guy who was in the Fin Review 2 weeks ago with the 2 page spread. He was in the Securities division of that company and yes I can't understand how the councils bought that US stuff. The problems of having a US parent I guess. Having said that the local asset management arm of them (ie the fund manager) only has Australian AAA type stuff in their portfolio i believe and all their assets price daily. there is another high income manager with $2.7b odd in their fund, they'll surely find it a challenge to manage that kind of money if the credit cruch does come. surely at that size they must own a large chunk of some of those notes they hold?? we can only wait and see I guess. anyway, keep posting