Friday, September 07, 2007

Spin of the Week.....Citigroup’s SIV Overseers

Isn´t it refreshing when everybody is calling for more transparency the persons / institutions concerned are heading way too often in the opposite direction...... A big hat tip to the Financial Times that once more trumps the often superficial WSJ! Click on the headline to read the entire report.

Ist es nicht nett anzusehen wenn die ganze Welt nach mehr Transparenz im Finanzchaos sucht und sobald es ans Eingemachte geht die betroffenen Akteure "höchst fragwürdige" Auskünfte geben.... Einmal mehr großen Dank an die Financial Times die mal wieder deutlich die Nase vorm allzu oft oberflächlich berichtenden WSJ hat. Klickt wie üblich auf die Überschrift um den ganzen Bericht zu lesen.
In a letter seen by the WS Journal, Citigroup’s SIV overseers, Paul Stephens and Richard Burrows, said that:

Quite simply, portfolio quality is extremely high and we have no credit concerns about any of the constituent assets… SIVs remain robust and their asset portfolios are performing well.

But look at the filings with the London Stock Exchange, and you will see that Citi’s SIVs have seen declines in portfolio net asset value of 17-20 per cent in the past few months, which doesn’t quite sit comfortably with Stephens and Burrows assertion that “asset portfolios are performing well”.

Citi’s SIVs certainly do contain some very strong assets - their direct subprime exposure is accordingly, minimal, and a large chunk of their portfolios is rated highly. SIV managers are trying to stress the quality of their portfolios over their current values. But in a market such as this, that doesn’t necessarily matter, because a whole range of assets are suffering from contagion and fear.

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4 Comments:

Blogger Edgar said...

US banks and corporations are accountable to no-one. I can't believe the rest of the world isn't getting sick of being taken advantage of. One simple rule: "If the US grifters want something, it is beneficial to only them". When is the rest of the world going to stand up to those apes?

2:25 PM  
Blogger jmf said...

Moin Edgar,

i have asked me the same question over and over.

I think this is especially true when you include Treasuries and FNM and FRE paper.

Probably one of the worst fixed investments out there.

Just watch the $ ......

10:35 PM  
Blogger Edgar said...

Hi jmf, you said:

Just watch the $ ......

You know, I do almost daily. It is time for this country to learn a hard lesson about complacency and paying attention. I understand that FCBs want to hold a certain amount of treasuries, but trillions? It makes no sense to me why they would enable the maggots over here to get away with murder. Japan and S. Korea I understand, but the ECB and China? There is a lot of elist stuff going on that we are not privy to, IMO. Remember one simple axiom: "The Wall Street maggots have nothing of any real value to sell, it is all garbage, otherwise they wouldn't sell it".

Oh quick English lesson you said i have asked me... it is: "I have asked myself..." Just trying to help. Later dude.

6:34 AM  
Blogger jmf said...

Moin Edgar,

thanks for the correction

I´m always open to improve my often lousy English.

I still have hope that after the latest events in the US more and more people and Institutions around the globe will wake up.

I´m witnessing that this is the case in Germany. Lots of this has to do with the US politics but it is spreading to the once admired US economy.

And this movement is gaining momentum at a record pace....

6:44 AM  

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