Things are going to get a lot wrose before it they get worse

Structuredd credit; who would have thought that it would become the source of humor.

Things must be bleak when your hedge fund manager—after posting an approximately 40% decline on the year—looks for solace in black humor. Structured credit shop Eidesis Capital is licking its wounds after a disastrous 2007. And, quoting comedian Lily Tomlin, it warns, “things are going to get a lot worse before they get worse.”

“Despite all the well-publicized and traumatic developments to date, the extent of the problems in credit are underestimated and mechanics of what is transpiring in the credit formation infrastructure are still not fully appreciated by most market participants,” the firm’s managing members wrote to investors last month.