Wednesday, November 07, 2007

Risk rises of asset fire sale; signs ‘superfund’ has stalled

Some might argue that these are market and not fire sale prices......... But as long as they can convince the rating agencies and the auditors that their "models" imply a higher price.......

Einige könnten argumentieren das diese Preise dann Marktpreise und keine Schleuderpreise sind.... Aber solange es möglich ist die Rating Agenturen und die Buchprüfer davon zu überzeigen das die hauseigenen Modelle einen höheren Wert ergeben.......

Risk rises of asset fire sale; signs ‘superfund’ has stalled / FT
The threat of fire sales of mortgage-backed securities is mounting as rating agency downgrades have pushed debt vehicles into technical default. The prospect of forced sales comes as a US Treasury-backed plan for a “superfund” to buy up distressed mortgage securities appears to have stalled. S&P and Moody’s have received default notices for $5bn worth of CDOs, giving investors in senior tranches the right to sell assets.

The $75bn superfund plan - designed to purchase assets from distressed investments linked to banks and so prevent fire sales - seems to be stalled following the upheaval at Citigroup.

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2 Comments:

Blogger jmf said...


Citigroup Credit Swaps Near Five-Year High on Subprime Concerns

1:07 AM  
Blogger jmf said...


Failed buyouts double to exceed $200bn


Private equity bidders are finding life difficult since the credit squeeze and are walking away from deals, inflating the value of failed buy-outs to $202bn this year, more than double the figure for the same period last year. Just as Delta Two blamed credit market turbulence for dropping its bid for J Sainsbury, so several buy-out groups have wriggled out of bids launched before the financing squeeze. There have been 76 abandoned deals so far, including the failed CVC bid for Sainsbury and Cerberus’s abortive offer for Affiliated Computer Services, said Dealogic. That compares with 55 failed private equity bids worth $98.9bn in the previous period.

1:09 AM  

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