Sunday, June 15, 2008

Investors Hit $10bn Loss In US Financials

Never catch a falling knife.......It remains to be seen if the Sovereign Wealth Funds won´t double down..... :-) Just watch todays news on Barclays....... It seems like they still havn´t lost enough..... At least they bought into a strong currency..... ;-)

Greife nie in ein fallendes Messer..... Bin wirklich gespannt ob sich die staatlich kontrollierten Fonds wirklich ernsthaft zurückhalten. Das Beispiel Barclays zeigt momentan noch ein anderes Bild. Mann könnte auch sarkastisch sagen das hier der "Anfängerfehler" gemacht wird und die Positionen "verbilligt" werden..... :-). Die Verluste sind anscheinend noch nicht schmerzhaft genug..... Immerhin haben Sie sich dank der "gelungenen" Investment in eine "starke" Währung eingekauft ...... ;-) Investors hit $10bn loss in US financials FT
Investors who backed US financial companies’ drive to raise much-needed capital are sitting on nearly $10bn in paper losses amid a continued slump in the sector’s shares, a Financial Times analysis shows.

The negative returns suffered by investors are likely to make it more difficult and expensive for US financial groups to tap equity markets if, as expected, the credit crunch forces them to raise more capital.

“Raising funds from equity investors is becoming increasingly complicated because the performance of financial stocks during and after the spate of fund-raisings has been so abysmal,” said a Wall Street banker who advises institutions.

The setbacks suffered by equity investors come as sovereign wealth funds – a rich source of capital at the beginning of the crisis – have moved to the sidelines after seeing the value of investments fall in companies such as Citigroup, Merrill Lynch and Morgan Stanley.

Investors who bought the $65bn-plus in common and convertible shares issued by large US financial institutions since last October have seen their total investments fall by more than $9.7bn – a negative return of about 15 per cent – according to an FT analysis of Dealogic data.

> I doubt that all of the SWF were as smart as the following....

> Glaube kaum das alle SWF ähnlich weitsichtig wie der nachfolgende agiert haben.....

FT Abu Dhabi’s Adia, meanwhile, had structured its November investment in Citi in a way that gave it the right to go back and strike better terms on its deal, heightening its downside protection to match the terms GIC and Kia struck with Citi.

> Lets hope for them that this kind of term is still in place during the next few capital raising attempts from Citi.... :-)

> Bleibt zu hoffen das diese Kalusel auch noch nach der 3. und 4. Runde von Kapitalerhöhungen bei Citi in Kraft ist...... :-)

Those who took part in the $1.2bn recapitalisation of the bond insurer Ambac last March are nursing paper losses of more than 70 per cent. And fund managers who backed a $1.2bn capital raising by fellow monoline insurer MBIA have seen their investment shrink by 60 per cent.

Shareholders in Citigroup who thought that the sharp fall in the stock made last month’s $4bn share issuance a buying opportunity face a 24 per cent loss.

Of the 20-plus fund raisings by US banks and insurers since the onset of the crisis, only two – by the student loan provider Sallie Mae and the regional lender Sovereign Bancorp – show a small positive return

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