Number Of The Day " Percentage Of US Companies With A Junk Rating"

This at the start of a deep and long recession...... After the events of the last 3 month it is valid to wonder how much of this debt will get bailed out ( GM....) or will end up without much disclosure on the Fed´s balance sheet......I wonder how many companies are now on the brink of bankruptcy just because they decided to make big debt financed stock buybacks or megalomaniac takeovers & buyouts......

Diese Zahl bereits am Anfang einer schweren und langwierigen Rezession bedeutet nichts Gutes..... Nach den Ereignissen der letzten 3 Monate darf man wohl berechtigt fragen wieviel von diesem Junk entweder ein Bailout ( GM.... ) bekommen wird oder gar ohne großartige Transparenz in der immer weiter explosionsartig wachsenden Fed Bilanz verschwinden wird..... Tragischerweise befinden sich etliche dieser Unternehmen nur dank massiver schuldenfinanzierter Aktienrückkaufprogramme und größenwahnsinniger schuldenfinanzierter Übernahmen ( denke vor allem an Private Equity aber leider auch an den Fall Siemens VDO, Conti, Schaeffler ) in dieser wohl letzlich "tödlichen" Situation.......


WSJ Junk-Bond Market Has Closed the Door
Yields Upward of 20% Make It Too Pricey for Borrowers; Zero Deals Made It in November

About 50% of U.S. companies have below-investment-grade credit ratings, making the $750 billion junk-bond market a vital source of financing for car makers, airlines, retailers, utilities, restaurant chains and media companies

>The next chart is making things even scarier........ Within the "junk" label the remaining "quality" has deterioting fast and furious especially over the past few years..........

> Der nächste Chart macht alles nur noch erschreckender...... Innerhalb des "Junkuniversums" hat sich zudem die Qulität besonders im Laufe der letzten jahre massiv verschlechtert......

Chinese "Shocker" From Home Improvement Retailer Kingfisher

No major news but similar stories are popping up now on a daily basis and are a clear sign that something is brewing in China....... Add this story from the NYT to the mix and combine this with the following image ........ No wonder the Communist Party is very busy ( slashing rates & reserve requirements, stimulus plans, stop the YUAN appreciation, elimination or reducing export tariffs , etc ...... )

Die Meldung für sich genommen ist nicht sonderlich spektakulär. Da man aber momentan fast tagtäglich mit ähnlich lautenden Meldungen aus dem einstigen Hoffnungsträger konfrontiert wird, kann man es wohl als Zeichen sehen das sich irgendetwas ernsthaftes in China zusammenbraut...... Passend hierzu auch der sehr anschauliche Bericht der NYT. Wenn man die aktuelle Nachrichtenlage nun mit der nachfolgenden Illustration kombiniert....... Kein Wunder das die Kommunistische Partei sich in letzter Zeit hyperaktiv zeigt ( radikale Senkung der Zinssätze sowie der Mindestreservesätze, ein nicht gerade kleines Konjunkturpaket, Aussetzung der YUAN Aufwertung, Streichung oder Reduzierung von Exportzöllen usw.......... )

UPDATE: Chinese official warns on downturn via FT Alphaville

The downturn in the Chinese economy accelerated over the past month and could lead to high unemployment and social unrest, the country’s top economic planner warned on Thursday.

Nov. 27 (Bloomberg) -- Kingfisher Plc, Europe's largest home-improvement retailer, fell in London trading after reporting a wider loss and tumbling sales in China, one of the overseas markets it counts on as U.K. demand withers.

Slowing demand in China is ``likely to be weaker and last longer than previously anticipated,'' the London-based company said today, as fewer consumers buy new apartments and seek out homewares. The retailer, which reported third-quarter results today, said confidence was ``shaken'' in all its markets.

The Chinese unit reported a loss of 17 million pounds ($26 million) and sales fell 28.7 percent.

Kingfisher

The Chinese market continued to deteriorate and new apartment sales were again significantly down. The property slowdown has particularly impacted &Q’s business as half its sales were generated from internal design and fit out of new apartments.

The Chinese loss is a ``shocker,'' offsets better-than- expected results in Europe and is ``forcing a reassessment of how major a restructuring could be required,'' Investec analyst David Jeary wrote in a note. He rates Kingfisher ``sell.''

The retailer was the first international home-improvement chain to enter China, where it has about 60 stores

. Revenue there had been falling since last year after the government raised home-deposit requirements to curb speculation. Since July, China has had to shift its focus from containing inflation to sustaining growth as the global economic slowdown spreads.

No Limit Specified........

Lets hope they still can find enough buyers of their treasuries ( see Who Will Be Left To Buy US Treasuries...... & China Slashes Lending Rate to Support Slowing Economy ) to finance their daily bailout ( see Breakdown of the Bailout Rescue Efforts & Various Fed Lending Facilities ) with a yield close to 3% .... The bigger issue down the road could be that the "investors" are demanding bonds that are not $ denominated......Got Gold.....?

Bleibt zu hoffen das die USA es weiterhin schaffen genügend "smarte" Investoren finden ( siehe auch Who Will Be Left To Buy US Treasuries...... & China Slashes Lending Rate to Support Slowing Economy ) die bereit sind dies täglichen Bailouts ( siehe Breakdown of the Bailout Rescue Efforts & Various Fed Lending Facilities ) für 3% in US Währung zu finanzieren..... Die US sollten sich schon einmal entfernt darauf gefasst machen das es in naher Zukunft bald Investoren gibt die keine US Anleihen auf $ Basis mehr abnehmen wollen.......Got Gold...? UPDATE: Netter Bericht der FTD 700 Milliarden? Ha! Es sind 8500 Milliarden

WSJ

An even better graph is coming from the NYT

Eine noch besser Übersicht liefert die NYT

bigger / größer

Barry Ritholtz has much more and slightly different data ( but what are a few trillions here and there these days ) and the quote of the day......

Barry Ritholtz hat noch mehr und leicht abweicdhende Daten ( aber was sind heutztage einige Billionen unter Freunden ) zu diesem Thema und ein Zitat das wohl mehr als alles andere die Ausmaße der aktuellen Bailouts beschreibt......

The only single American event in history that even comes close to matching the cost of the credit crisis is World War II: Original Cost: $288 billion, Inflation Adjusted Cost: $3.6 trillion

The $4.6165 trillion dollars committed so far is about a trillion dollars ($979 billion dollars) greater than the entire cost of World War II borne by the United States: $3.6 trillion, adjusted for inflation (original cost was $288 billion).

Go figure: WWII was a relative bargain.

No wonder the CDS on US Debt are "moving"........ Via FT Alphaville

Kein Wunder das die Absicherung gegen einen möglichen US Bakrott langsam in "Bewegung" kommen..... Dank an FT Alphaville

U.S. Agrees To Citigroup Bailout

What a start to a week..... I´m running out of words .... Just a few points...... Reminds me of the UBS bailout ( see UBS Transferring $60 Billion in Dud Assets to Swiss National Bank, Raises $5.3 Billion ).....On top of this it is looking more and more like John Hempton was spot on (make sure you read his theory) .....Hat tip Naked Capitalism.... After the structure & terms of this bailout it will almost be impossible to deny any other enquiries ( GM...... )...... UPDATE: Official Term Sheet is out and has some slightly different numbers & details or read the Summary via FT Alphaville

Da mir anhand der tagtäglichen Ungeheuerlichkeiten bald die Worte fehlen möchte ich lediglich sagen das hier wohl Anleihen aus der Schweiz übernommen worden sind ( siehe UBS Transferring $60 Billion in Dud Assets to Swiss National Bank, Raises $5.3 Billion ).... Zudem empfehle ich dringend nachfolgenden Link von John Hempton zu lesen.... Was zum Zeitpunkt des Postings für viele noch ungeheuerlich erschien ist rückblickend fast als genial zu bezeichnen...... Beide Male geht der Dank an Naked Capitalism ... Die Struktur sowie die Bedingungen diese Bailouts achen es unmöglich überhaupt noch eine Anfrage weiterer Bailouts abzulehnen ( GM.... )..... UPDATE: Das offizielle Memo ist veröffentlicht und beinhaltet einige kleine Abweichungen hinsichtlich Summen und Bedingungen. Eine nette Zusammenfassung gibt es von FT Alphaville

WSJ Billions in Toxic Assets May Be Removed; New Phase for Government Bank Rescue

WASHINGTON – The federal government agreed Sunday to take unprecedented steps to stabilize Citigroup Inc. by moving to guarantee close to $300 billion in troubled assets weighing on the bank's books, according to people familiar with details of the plan.

Treasury has agreed to inject an additional $20 billion in capital into Citigroup under terms of the deal hashed out between the bank, the treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corp. Treasury officials will charge a higher interest rate for the capital injection -- 8% for the first few years

-- than it has charged to dozens of other banks now borrowing money under the government's the $700 billion rescue package approved by Congress last month.

In addition to the capital, Citigroup will have an extremely unusual arrangement in which the government agrees to backstop a roughly $300 billion pool of its assets, containing mortgage-backed securities among other things. Citigroup must absorb the first $37 billion to $40 billion in losses from these assets. If losses extend beyond that level, Treasury will absorb the next $5 billion in losses, followed by the FDIC taking on the next $10 billion in losses. Any losses on these assets beyond that level would be taken by the Fed.

Citigroup would also agree to work to modify -- if possible -- troubled mortgages held in the $300 billion pool, using standards created by the FDIC after the collapse of IndyMac Bank.

The government is not expected to require any management changes, as that was seen as potentially being too destabilizing.

Under terms of the agreement, the Treasury Department and FDIC will guarantee $306 billion of Citigroup loans and securities backed by residential and commercial real estate and other assets, which will remain on the bank's balance sheet. Citigroup will absorb the first $29 billion of losses, with the government stepping in after that as "protection against the possibility of unusually large losses."

> Make sure you read Citi of over-leveraging to put Citi´s loss absorbtion into perpective.......

> Empfehle einen Blick auf Citi of over-leveraging um zu erkennen das die Verlustsumme der Citi ein einziger Witz ist.....

Among the conditions that Citigroup agreed to is "an executive compensation plan, including bonuses, that rewards long-term performance and profitability, with appropriate limitations," according to the Treasury Department. Details on the company's compensation "must be submitted to, and approved by" the government. .....

The plan would essentially put the government in the position of insuring a slice of Citigroup's balance sheet.

Another possibility on the table was the creation of what is sometimes called a "bad bank" -- an outside entity designed to hold some of a financial firm's worst assets. That structure would help Citigroup cleanse itself of billions of dollars in weak assets, these people said.

In either case, taxpayers could be on the hook if Citigroup's massive portfolios of mortgage, credit cards, commercial real-estate and big corporate loans continue to sour.

It was unclear Sunday night whether the government would take an additional equity stake in Citigroup in return for the support. Citigroup previously agreed to issue the government preferred shares in return for the $25 billion the bank received as one of the first nine companies to get capital infusions.

If the government sets up the bad-bank structure, the amount of financial support will be a key variable. If there is too little, investors might conclude that the bad assets will wipe it out, leaving the bank right where it was before.

In addition to $2 trillion in assets Citigroup has on its balance sheet, it has another $1.23 trillion in entities that aren't reflected there. Some of those assets are tied to mortgages, and investors have worried they could cause heavy losses if they are brought back on the company's books.

One rescue structure under consideration would resemble aspects of the $150 billion bailout plan the government struck with American International Group Inc. in November. Two vehicles, funded largely by as much as $52.5 billion in government money, were created to take on risks from some of AIG's souring assets, including exposure to credit derivatives. That deal also reduced interest costs on AIG's previously arranged $60 billion loan from the government.

In Citigroup's case, the government's arrangement likely will be able to accommodate only a sliver of the company's more than $3 trillion in assets, including its holdings in off-balance-sheet entities. Jitters about such "hidden" assets helped trigger the nose-dive in Citigroup's stock last week. Among the off-balance-sheet assets are $667 billion in mortgage-related securities.

Citigroup has tried repeatedly to rid itself of its exposure to those assets. In late September, the company reached an agreement for a government-financed acquisition of Wachovia Corp. Under that planned deal, Citigroup and the government were going to divvy up the losses on $312 billion of assets, with Citigroup absorbing the first $30 billion in losses and the government shouldering the remainder.

Citigroup described that arrangement as intended to insulate it from Wachovia's risky mortgage assets. But Citigroup also would have been able to unload some of its own assets, according to people familiar with the matter.

Chart Of The Day "Junk Yields"

Despite the rollercoaster ride in stocks the action in the bond & debtmarket is even more fascinating....... The main driver of equities for the next few years will be the quality of the balance sheet ( especially after goodwill....) and the timetable for the refinancing of the maturing debt/bonds..... Earnings will be a second-tier issue..... Bondholders will be in the driver seat........ No more attempts to "return value to shareholders" like shown from Daimler ( see How Daimler Wasted € 7 Billion On Buybacks In Just 15 Months...... )..... Needless to say they are also now begging for some kind of bailout.......

Trotz des tagtäglichen Wahnsinns an den Aktienmärkten spielt sich noch sagenhafteres an den Kredit & Anleihemärkten ab. Denke das in den nächten Jahren wie bereits mehrfach erwähnt vorrangig die Bilanzqualität ( vor allem nach den kommenden Goodwillabschreibungen, da versteckt sich noch so manche Bombe....siehe Die nächste Bilanzbombe tickt FTD, besonders interessant wenn mal wieder auf die niedrige Buchwertbewertung der DAXtitel hingewiesen wird .... Got Gold......) sowie die Zeitachse der kommenden Refinanzierungen der ausstehen Anleihen/Kredite die erste Geige für die Aktienkursentwicklung spielen wird. Die Gewinne ( oder besser ausgedrückt Verluste ) rücken da eindeutig in den Hintergrund. Die Bondholder werden zukünftig das sagen haben..... Immerhin bleibt uns dann der Wahnsinn der schuldenfinanzierten Aktienrückkäufe erspart ( das passiert wenn der Vorstand sich mit Haut und Haaren dem kurzfristigen "shareholder value" & seinen Aktienoptionen verschrieben hat.....Betonung liegt hier auf kurzfristig ... Fragt mal bei Daimler nach... siehe How Daimler Wasted € 7 Billion On Buybacks In Just 15 Months...... )


WSJ

Unrelenting declines in corporate "junk" bonds have pushed yields on these riskier securities to over 20% on average, a record

Bespoke

Based on data from Merrill Lynch, high yield bonds are yielding nearly 1,800 basis points more than comparable Treasuries. In the last month alone, spreads have risen by more than 200 basis points, and since bottoming in the Summer of 2007 at 241 basis points, they are up 645%. To put this in perspective, with the 10-Year US Treasury now yielding 3.4%, a high-yield borrower would need to pay roughly 21.4% per year to take out a ten-year loan. With terms like these, who needs loan sharks?

Much more insight via Naked Cpitalism Junk Bond Yields Up Sharply. On top of this visit FT Alphaville for an even more "impressive" chart on CDS ( see iTraxx Europe at all time high ). Combine all this with this chart and is not difficult to imagine that the worst is still to come.....

Mehr Details mal wieder von Naked Capitalism Junk Bond Yields Up Sharply . Einen noch beeindruckenderen Chart der CDS bietet FT Alphaville ( siehe iTraxx Europe at all time high ). Wenn man nun das Drama mit diesem Chart kombiniert ist unschwer zu erkennen das uns "ruppige" Zeiten ins Haus stehen......

Mad Cow Disease "Solarworld Edition"......

Wow. I´m not kidding and have double-checked the date ( no it´s not "Fools Day".... ) & the companies website ( no english link available yet UPDATE: See text from the report further down .......). Solarworld, one of the largest solar companies with one of the strongest balance sheets wants to take over all German facilities from Opel ( GM’s Opel May Need EU1.8 Billion Guarantee ) that is on the brink of going under when GM won´t get the bailout. The US equivilant would be that First Solar (FSLR) wants to take over Ford........They want to waste their € 250 mio in cash and their € 750 mio in credit lines (conditional to a guarantee from Germany). On top of this they are demanding a compensation from GM for the 40.000 workers totalling € 1 billion .....Goal is to create the first "green automobilcompany in Europe".......

Either the prospects for solar in general must be disastrous, hackers have entered the site or the CEO is heavily on drugs...... Wonder why the stock is only down 15 percent.... If you want to know more about the "Mad Company" visit Solarworld

Entweder die Seite ist von Hackern geentert worden, die Aussichten für die Solarbranche sind unterirdisch oder der CEO ist übelst auf DROGE......... Es grenzt an ein Wunder das die Aktie nur 15% nachgibt...... Schon erstaunlich wie man mit einer einzigen Meldung die bisher doch recht ansehliche Reputation die über Jahre hinweg erarbeitet worden ist zerschmettern kann.....

Solarworld Reconstruction to Green Automotive Group

SolarWorld AG is planning to submit an offer to the US car maker GeneralMotors (GM) to take over the four German factories and the Rüsselsheimdevelopment center of Adam Opel GmbH. To this end SolarWorld AG can makeavailable cash funds amounting to 250 million EUR and bank credit linesworth 750 million EUR under the proviso that the federal governmentprovides a guarantee.

The SolarWorld Group which has so far beenexclusively involved in solar power technology would subsequently develop Opel into the first 'green' European automotive group. A core prerequisitefor the submission of the offer is the complete separation of Opel from theGM Group and a compensation payment of 40,000 EUR per German job (totaling1 billion EUR).

At the four German Opel locations it is the idea of SolarWorld AG tocontinue the sustainable further development of the current successfulmodel ranges and, additionally, to produce a new generation of vehicleswith energy-efficient, low-emission drives in the future.

Solarworld Umbau zum grünen Automobilkonzern

Die SolarWorld AG plant dem US-amerikanischen Automobilkonzern General
Motors (GM) das Angebot zu unterbreiten, die vier deutschen Werke und das
Entwicklungszentrum in Rüsselsheim der Adam Opel GmbH zu übernehmen.

Dafür kann die SolarWorld AG Opel Barmittel in Höhe von 250 Mio. Euro und Banklinien von 750 Mio. Euro vorbehaltlich einer Bundesbürgschaft bereitstellen. Der bisher ausschließlich in der Solartechnologie aktive Konzern würde damit Opel zum ersten 'grünen' europäischen Autokonzern weiterentwickeln. Kernvoraussetzung für die Abgabe des Angebotes zur Übernahme ist die komplette Trennung aus dem GM-Konzern und eine Kompensationszahlung von 40.000 Euro pro deutschem Arbeitsplatz (insgesamt 1 Mrd. Euro).

An den vier deutschen Opel-Standorten soll nach Vorstellung der SolarWorld AG künftig neben der nachhaltigen Weiterentwicklung der erfolgreichen Baureihen eine neue Fahrzeuggeneration mit energieeffizienten und emissionsarmen Antrieben produziert werden. Das europäische Entwicklungszentrum in Rüsselsheim arbeitet bereits an Lösungen für
zukunftsfähige Elektrofahrzeuge wie dem 'Volt'. Mit dem Umbau der Produktpalette würde der traditionsreiche deutsche Autobauer künftig insbesondere Elektro- und Hybridfahrzeuge und Typen neuester Technologie wie extended-range Elektrofahrzeuge anbieten, die Elektro- und Verbrennungsmotor hocheffizient kombinieren.

> I´m still not sure which photo is showing the CEO....... :-)

> Bin mir immer noch nicht sicher auf welchem Bild der CEO abgebildet ist... :-)

Bird & Fortune : Silly Money

Thanks from Germany to Hedge Fund Post for digging out this piece of brilliance. Enjoy! Make sure you don´t miss the end of part 2......

Herzlichen Dank an Hedge Fund Post! Einfach nur genial! Verpasst bitte nicht das Ende von Part 2......

Part 1


Part 2

Gaming The TARP "Pay $10m, get $3.4bn of funding?"

That is what is happening when you have opened Pandorras Box...... You really cannot blame Hartford for using all the loopholes......

Das passiert folgerichtig wenn man einmal damit angefangen hat Pandorras Box in Form von Markteingriffen auf Wochenbasis zu öffnen..... Ich zumindest mache Hartford nicht den geringsten Vorwurf all die Schlupflöcher zu Lasten der Steuerzahler zu nutzen..... Aus deutscher Sicht besonders erfreulich da sich hier abzeichnet das die Beteiligung der Allianz jetzt doch nicht ganz so schnell gegen Null tendiert ( siehe Postingende )......

Corporate Welfare by R.J. Matson Barry Ritholtz

FT Alphaville

Nov. 14 (Bloomberg) — Hartford Financial Services Group Inc. said it’s buying a Florida bank [Federal Trust Bank] for $10 million so the insurer can be eligible for the Treasury rescue program.

Hartford, based in the Connecticut city of the same name, expects to qualify for $1.1 billion to $3.4 billion under Treasury guidelines, the company said in a statement distributed today by Business Wire.

What blatant abuse. From the the statement:

“We are taking these actions as a strong and well-capitalized financial institution looking for maximum flexibility and stability,” said Ramani Ayer, The Hartford’s chairman and chief executive officer. “Securing capital at the terms available through the Capital Purchase Program could be a prudent course in this market environment and would allow us to further supplement our existing capital resources.”

(Translation: Pay $10m, get $3.4bn of funding? Where do we sign?)

> Here are the terms of the Allianz capital investment just 4 weeks ago......

> Nachfolgend die Bedingungen zu denen die Allianz noch vor 4 Wochen Kapital zur Verfügung gestellt hat.....

The Hartford Closes On $2.5 Billion Investment From Allianz SE

The Hartford Financial Services Group, Inc. (NYSE: HIG) today announced the closing of a $2.5 billion capital investment by Allianz SE.

Under the agreement, Allianz has purchased, at $31 per share ( Stock Friday $ 12,65 ), $750 million of preferred shares convertible to common stock after receipt of applicable approvals, and $1.75 billion of 10% junior subordinated debentures.

The debentures are callable by The Hartford at par beginning ten years after issuance. Allianz SE also received warrants which entitle it to purchase $1.75 billion of common stock at an exercise price of $25.32 per share, subject to shareholder approvals. The warrants expire in seven years. The Hartford had announced the deal on October 6.

I want to close this post with a quote from the WSJ that isn´t quite "promising".....

Am besten beendet man dieses Posting mit einem Zitat aus dem WSJ das einen nicht gerade hoffnungsvoll in die ZUkunft schauen lässt......

Congress: Treasury Messed Up the Bailout. Let’s Give it More Power.

So says Congress: Treasury has done a terrible job of managing the bailout. That’s why Treasury should get expanded authority — for instance, to approve bank mergers.

Such paradoxical statements make perfect sense to some Congressional leaders, including New York Democratic Senator Chuck Schumer

Debt Pile Looming Over European Firms

I´ll bet that some will damm their debt financed aquisitions & stock buybacks ( for some "amusing" examples see "I Want My Buyback Back" ) ........ I assume that during the coming at least 2 years it won´t be the earnings that will dominate the stockprice .... It will be all about the balance sheet....... The management will be forced from a shareholder value oriented mood to "serve" their new masters aka the bondholders.......

Kann mir gut vostellen das einige inzwischen Ihre schuldenfinanzierten Übernahmewahn & die Aktienrückkäufe bereuen ( einige "amüsante" Beispiele gibt es hier zu bewundern "I Want My Buyback Back" ) ...... Bin mir ziemlich sicher das zumindest auf Sicht von 2 Jahren weniger die Gewinnsituation als die Bilanzqualität das beherrschende Thema der Aktienmärkte sein werden..... Das Management wird zukünftig nicht mehr die Aktionäre sondern die Bondholder in den Mittelpunkt Ihrer "Bemühungen" stellen......

> The trouble is getting even greater when you combine the graph with the spread charts via Mish

> Wie prekär die momentane Lage ist zeigt mehr als eindrucksvoll wenn man die o.g. Grafik mit den nachvolgenden Charts kombiniert Unternehmensanleihen auf Tauchstation via Zeitenwende/Mish

WSJ European companies, already in the middle of an economic downturn, face another uphill struggle as they seek to refinance $242.6 billion of maturing debt over the coming year, according to credit-ratings firm Standard & Poor's.

"Funding pressures in Europe have escalated sharply since September as stress in the global financial system accelerated," the report said.

According to the report, European companies will be forced to pay back or refinance $586.3 billion through 2011, with more than 40% of that debt coming due over the next year.

French nonfinancial corporate issuers account for the largest portion of debt to be refinanced, with 26%, followed closely by the U.K., Germany, Netherlands and Italy, which have a combined share of 79%.

No company rated below single-A has managed to access the bond market in recent months, offering little hope for companies further down the ratings scale

The report examined all debts rated by S&P including bank loans, notes and bonds.

>The banks will have to pray that the companies manage the refinancing of the debt... Otherwise they are forced to tapp corporate bank lines .....

> Die Banken dürften bereits jetzt anfangen zu beten das es möglich sein wird diese fälligen Anleihen zu refinanzieren...... Ansonsten bleibt den Firmen nichts anderes übrig als die bestehenden Kreditlinien der Banken anzuzapfen...... Sicher nicht der glücklichste Umstand wenn nahezu alle Banken dringend auf Ihre Kapitalstärke achten müssen......

Credit terms increasingly tied to risk FT Alphaville - US and European companies renewing short-term credit facilities are being forced to accept terms that link interest payments to their creditworthiness. In recent months, AT&T, Wal-Mart, Caterpillar, Halliburton, Nokia and Novartis have all renewed their short-term financing arrangements, including revolving credit facilities, and found that “relationship pricing” is no longer available. Instead,

companies are finding that banks - which had offered cheap loans to top corporate clients - now price these facilities based on measures of credit risk. In most cases, credit default swaps are being used.

The first deal for this new type of pricing for revolving loans, totalling an estimated $6,000bn worldwide, was done in April

Since then, such terms have become widely used. Banks hope this will discourage companies from tapping these credit lines unless they absolutely need to. Already, at least 20 such deals for 364-day revolving credit facilities – a type of overdraft for companies to ensure access to funds in case markets shut down – have been completed and at least as many are in the pipeline.

Update via Bloomberg Borse Dubai May Refinance $4.2 Billion of Loans at Higher Costs

Borse Dubai Ltd., the Gulf emirate's state-owned operator of exchanges, is in talks to refinance $4.2 billion of loans at interest rates tied to the price of credit- default swaps, raising the cost of the debt, said three bankers with knowledge of the transaction.

The new debt may pay interest of as much as 6 percentage points over the London interbank offered rate on loans for three years, said the bankers, who declined to be named because the negotiations are private. That compares with a margin of 1.1 percentage points on the existing loans, which were used to buy Sweden's OMX AB last year

Who Will Be Left To Buy US Treasuries......

I think this will be one of the most important questions especially after one "natural" buyer after another buyer like China is obviously has to spend lots of their "war chest" at home ( see this excellent piece via naked Capitalism China Announced $586 Billion Stimulus Plan, No Kidding.... Dubai May Need Help To Repay Debt.... & You can’t even depend on the SWFs).....

Ich denke eine der entscheidenden Fragen in naher Zukunft wird sein ob es den USA weiterhin gelingt genügend ausländisches Kapital zu animieren wöchentlich wachsenden Baliouts (AIG, GM, ..... ) und die gefühlten quartalsweisen "Konjunkturpakete" zu finanzieren ( ganz zu schweigen von dem üblichen Defizit.....). Es sieht immer mehr so aus als wenn etliche der bisherigen "natürlichen" Käufer immer mehr Mittel aufwenden müssen um Ihre eigenen Wirtschaft vor einer ( nennen wir es vorsichtig ) Verlangsamung zu retten ( siehe via Naked Capitalism China Announced $586 Billion Stimulus Plan, No Kidding.... Dubai May Need Help To Repay Debt.... & You can’t even depend on the SWFs).....


In the meantime the US is anouncing one baliout a week ( AIG, GM, ..... ) and is discussing another stimulus package almost on a quarterly basis...... On top of this the Fed is close to a zero interest policy and the recent strength in the $ is likely mainly atrributet to the global delevereging..... Probably not the best circumstamces to attract trillions of foreign capital.... Especially when your futue liabilities are close to $ 50 trillion ( see If we are Rome, Wall Street's our Coliseum make sure you don´t miss the Colbert video with the former comptroller Walker )

Es bedarf schon einer gewissen US Arroganz darauf zu wetten das die Ausländer trotz einer Nullzinspolitik, einer Währung die wohl einen nicht geringen Teil Ihrer letzten Stärke allein dem Umstand des weltweiten Deleverering zu verdanken hat, neuen Haushaltslöchern beinahe im Stundentakt sowie der über allem stehenden tickenden Zeitbombe von Social Security & Pensionszusagen etc ( mit nahezu 50 Billion $ , siehe If we are Rome, Wall Street's our Coliseum , besonders empfehlensert ist das Interview mit dem früheren Oberaufseher der US Finanzen.....) weiterhin gewillt und in der Lage sein werden dieses zu finanzieren.....

I don´t want to speculate what could happen if the foreigners have to sell some of their US assets...... Got gold......?

In allen Überlegungen möchte ich leiber nicht damit anfangen zu spekulieren was passieren könnte sollten die Ausländer anfagen aktiv Ihre Positionen zu veräußern...... Got Gold.... ?

Thanks to Contrary Investor

Needless to say that US debt is still rated AAA.......

Überflüssig zu erwähnen das die US Staatsschulden noch immer mit AAA bewertet werden......

Revisiting China´s Sovereign Wealth Fund

Does anybody remember the buzz that Sovereign Wealth Funds would or could be the saviors of the financial market and especially the stock market around the world..... It seems that large part of the war chests (especially in China & Russia , and after this story No Kidding.... Dubai May Need Help To Repay Debt.... no one should expect miracles from the Middle Eastern petrodollars ....) are badly needed to bail out the domestic banking system & economy....... Just in time UPDATE: You can’t even depend on the SWFs via FT Alphaville

Kann sich noch einer an die Hyterie bezüglich der Sovereign Wealth Funds erinnern die drauf und dran waren die Lösung für die Kapitalmärkte und ganz besonders für die Aktienmärkte zu werden..... Es sieht ganz so aus als wenn die die zugegeben beachtliche Kriegskasse mehr und mehr dazu benötigen ( gilt besonders für China & Russland, und nach dieser Story No Kidding.... Dubai May Need Help To Repay Debt.... sollte man auch keinerlei Wunderdinge von den Petrodollars aus dem Mittleren Osten erwarten.... ) den heimischen Finanzsektor sowie einheimische Unternehmen "rauszuhauen"....... Passendes Update : You can’t even depend on the SWFs via FT Alphaville

WSJ

China's sovereign-wealth fund signed a deal to pump $19 billion into Agricultural Bank of China, part of a restructuring process that is expected to transform the bank into a stockholding company by the end of the year.

At least it could be that this "bailout/investment" from China Investment Corporation (CIC) is a better deal than their Blackstone & Morgan Stanley adventures.....

Immerhin hat das o.g. "Investment" ( oder besser gesagt Bailout ) der China Investment Corporation (CIC) gute Chancen ein besserer Deal als die Blackstone & Morgan Stanley Abenteuer zu werden.....

The "Accumulator".......

Another "innovative" product that is backfiring & will be eliminated very soon..... Being forced to double down ( if you want to spin it you can call it "cost average effect.....couldn´t resist....) in this market on a regular basis is indeed brutal..... But no mery they deserve the losses...... According to the journal this was the cause of the $ 2 billion Loss at CITIC ( see "Cowboy Hedging" Leads To $ 2 Billion Trading Loss.... )

Einmal mehr eine "Produktinnovation" die furchtbar nach hinten los geht und die es zukünftig sicher nicht mehr geben wird..... In regelmäßigen Abständen gezwungenermaßen in eine verlierende Position zu verbilligen ist so ziemlich das Gegenteil von gewinnbringend ( zu meiner aktiven Bank/Sparkassenzeit nannte man das im Fondsbereich bei noch "Cost Average Effekt"..... Vielleicht sollten die in Asien einfach mal die Vermarktung ändern.....). Da auch hier wieder Gier das Hirn gefressen hat hält sich mein Mitleid auch für die Privatinvestoren doch reichlich in Grenzen...... Lt. dem WSJ war auch die Art des "akkumulierens" die Hauptursache für den 2 Mrd $ Verlust von Citic ( siehe "Cowboy Hedging" Leads To $ 2 Billion Trading Loss....)

WSJ HONG KONG -- Amid widespread losses investors have suffered in the global financial crisis, one financial product popular in Asia has surfaced as the culprit behind a painful destruction of wealth for individuals and businesses alike.

Called an "accumulator," it is essentially a contract that obliges investors to purchase a security, currency or commodity at a fixed price -- often set at a discount to prevailing market rates -- at regular intervals. When the market price is above the fixed purchase price, the investor makes money. When it falls below the fixed price, the investor loses, sometimes quite a lot. Contract terms typically last a year.

In Hong Kong, recent losses from stock accumulators have led to dozens of complaints to regulators and legislators from disgruntled investors. Chan Kam-lam, a Hong Kong legislator, says he has heard from 50 or so individual investors, many of whom say they didn't fully understand the risk or blame their private bankers for pushing them into the products. Some individuals he has talked to have lost as much as $25 million. ...

Accumulators are among a number of structured financial products and derivatives that were sold to investors during headier times, when their downside risk seemed remote, but which are now wreaking havoc on private portfolios and corporate balance sheets amid huge volatility in global financial markets.

A fairly new flavor of derivative, the accumulator has led to big losses in some unexpected places. Among them: the books of VeraSun Energy Corp., one of the top three ethanol producers in the U.S., which filed for bankruptcy protection Friday. VeraSun had entered into accumulator contracts linked to the price of corn -- ethanol's key ingredient -- that led to big losses when those prices plunged amid a broader downturn in the commodity markets.

Citic Pacific Ltd., a Chinese-backed conglomerate listed in Hong Kong, recently reported a possible loss of nearly $2 billion, or more, thanks to its investments in a currency accumulator linked to the Australian dollar, which has fallen sharply against the U.S. dollar in recent months. News of the expected loss has punished the stock and has forced the company's Chinese parent to offer a rescue loan package.

Among the hardest-hit victims have been wealthy individual, or "retail," investors who bought stock accumulators in Hong Kong, by far the biggest market for the product, according to bankers. Hong Kong's financial regulator, the Securities and Futures Commission, estimated earlier this year that about $23 billion in accumulators remained outstanding.

What made them so popular? For one, years of rising equity prices and a dearth of fixed-income alternatives in Asia stoked interest in a number of equity-linked derivatives, including accumulators. Many people also appeared attracted by what seemed at first glance to be a great deal: the ability to buy stocks at a discount to the prevailing market price. This enhanced the impression that a bank's private-wealth clients were getting an exclusive offer only available to a select group.

And during the bull run in stock prices, when accumulators were most popular, many investors consistently underestimated the risk of a major, long-lasting downturn in shares that could leave them dangerously exposed.

As investors once enticed by the "discount" on their shares saw their losses mounting, they developed a new nickname for the accumulator: "I kill you later."

"The fundamental flaw with nearly all structured products that were developed is something that I learned from my grandmother: You get nothing for free," says Kathryn Matthews, chief investment officer for Asia at Fidelity Investment Management Ltd., which doesn't operate a private bank or offer accumulators.

Some investors have settled quietly for undisclosed sums with their private banks, according to people familiar with those negotiations. Others have opted to cut losses and terminate the accumulators, by selling them back to private banks for far less than their original purchase prices. Still others are hanging on to those investments, hoping a market rebound will restore ailing account balances......

The accumulator got its start in Europe as a corporate product, designed primarily for companies looking to build stakes in one another without causing sudden spikes in the share price of the target company.

Later, when private bankers began marketing the product to retail investors, the Asian market proved a lucrative source of new business.

Here is how an accumulator might have worked for an investor interested in accumulating a large position in China Mobile, one of the country's biggest telecom stocks.

larger/vergößern

A year ago, China Mobile was trading around 142 Hong Kong dollars (US$18.32) a share. An accumulator might have offered investors the ability to buy 1,000 China Mobile shares every month for a price of HK$114, or 20% below market price. The contracts typically included a "knock-out" clause, which terminated the contract once the stock appreciated 5%, or in China Mobile's case reached HK$149. If the stock reached that level, the return on the investor's outlay was 31%.

But here's the rub: Investors were contractually obliged to keep purchasing the shares at HK$114 regardless of whether they rose or fell. There was another nasty twist: Many accumulators required investors to double down on purchases if shares dropped, buying 2,000 shares instead of 1,000 at a price that now put them in the red.

For the 12-month accumulator, set in November 2007, investors quickly found themselves in this situation, as China Mobile's stock bounced around in the market's volatility. On Wednesday, the company's shares closed at HK$71.60 -- down 37% from the HK$114 purchase price. And because the investor is locked into making more purchases over the life of the contract, he keeps adding to his losses with each purchase.

No Nigerian Princes at the Fed..... :-)

LOL! The fact that the scamsters have shifted from Nigeria, Petro$ etc. to the Fed speaks volumes......That´s what can happen if you launch a new lending facility almost on a weekly basis and politicians & Fed are talking about bailouts for everyone an a daily basis...... The Fed balance sheet is already looking like some kind of scam......

Genial! Alleine die tatsache das die "Nepper,Schlepper,Bauernfänger" Ihren Fokus von Nigeria usw auf die Fed verlegt haben spricht Bände.....Man stelle sich mal vor die Bundesbank oder die EZB müßte per Pressemitteilung auf eine ähnliche Situation hinweisen. Das passiert aber wohl wenn man beinahe im Wochentakt neue Kreditlinien aus dem Hut zaubert und die Politiker & Notenbänker tagtäglich Bailouts für alle und jeden versprechen ..... Beim Anblick der Fed Bilanz würden ein paar mehr Programme auch nicht mehr ins Gewicht fallen..........

Real Time Economics / WSJ The Federal Reserve Board Board released a statement today warning consumers about a phishing scam that invokes the central bank’s name in an effort to bilk people out of their money.

The fake emails promise consumers access to loans through a nonexistent Fed lending program. Consumers are encouraged to deposit large sums of money into a bank account, under the guise of a security deposit, in order to receive the purported loan. Of course, the Fed doesn’t lend directly to consumers.

“Consumers are strongly urged to verify the legitimacy of potential service providers before entering into a business transaction,” the Fed said. “Individuals seeking personal finance options are encouraged to do business only with reputable lenders and to shop around for the most favorable loan terms.”

More On China´s Slowdown......

Havn´t heard the word decoupling for a long long time....... It will be interesting what will happen to the population will react when the slowdown intensifies ( i think it will ).... This can easily spread into trouble for the communist party..... UPDATE via Naked Capitalism Roubini Foresees Chinese Hard Landing

Könnt Ihr Euch noch an die schöne These erinnern das China sich vom Rest der Welt abkoppeln kann..... Denke es wird sehr interessant zu beobachten wie die Bevölkerung auf einen dramatische Verlangsamung des Wachstums reagieren wird.....Bin mir ziemlich sicher das die schon jetzt vorhandene Unzufriedenheit leicht explodieren könnte. In der Verlangsamung liegt also ein gewaltiges Maß an politischem Sprengstoff.... Bleibt zu hoffen das die kommunistische Partei Ihre bereits jetzt höchst fragwürdige Politik nicht noch weiter "überzieht"....... Passend hierzu via Naked Capitalism Roubini Foresees Chinese Hard Landing

WSJ Mount Gibson Iron Ltd. said three Chinese customers have defaulted on long-term iron-ore purchase agreements, but that two other buyers have agreed to step in -- albeit paying a much lower price. In addition, the new buyers, which are already shareholders, agreed to underwrite a capital-raising effort and they could end up owning as much as 40% in the Australian miner.

Mount Gibson said the new sales agreements were struck at a much lower price and its profits would take a "material" hit in the financial year that ends June 30, 2009.

The Australian company's willingness to accept a much lower price for its ore, at least over the next couple of months, shows how quickly a global slowdown has pegged back China's economy, forcing Chinese steel mills to slow production and pushing down iron-ore prices.

UPDATE via Bloomberg Scrap-Steel Buyers Cancel Purchases as Prices Tumble

Massive Redemptions Are Forcing German Property Funds To Freeze € 34 Billion Or 40% Of Assets Under Management

As of today the halted redemptions for the open property funds ( closed property funds have a volume that far exceeds the € 89 billion ) are limited for 3 month. It wouldn´t surprise me if we will see the other major players to follow very soon. The last time this has happened in 2005 with one fund from Deutsche Bank the investors were not hurt because Deutsche has used the freeze to unload several portfolios to private equity players ( what a surprise ... to see how massive the inflow of foreign money was see German Commercial Real Estate 2006 / Or How The Rolling Bubble Effects Germany ) . They were able to sell at a premium to the book value. If they really have to sell assets in this kind of market to meet the redemptions the result will be disastrous.

Momentan sind die Aussetzungen auf 3 Monate beschränkt. Ich könnte mir gut vorstellen das die anderen Spieler wie die Deka usw demnächst ähnliche Maßnahmen ergreifen müssen. Als die Deutsche Bank das erste Mal überhaupt einen Immobilienfonds im Jahr 2005 vorübergehend schließen mußte war das für die Anleger sogar positiv. Die Deutsche Bank nutze die Phase um diverse Objekte oder ganze Portfolios an damals noch flüssige Private Equity Spieler ( welch Überraschung... Um zu sehen wie stark dieser Einfluß war empfehele ich einen Blick auf folgendes Posting zu werfen German Commercial Real Estate 2006 / Or How The Rolling Bubble Effects Germany ) zu verkaufen. Diese Verkäufe gingen allesamt zu einem Preis über den Tresen der deutlich über den Buchwerten lag und so den NAV massiv erhöht hat. Sollten die Immofonds aber nun gezwungen werden in einen fast ausgetrockneten Markt ohne ausreichende Finanzierungsmöglichkeiten hinein zu verkaufen um die Rückzahlung der Anteile zu gewährleisten dürfte es weniger glimpflich ausgehen.......

Add to this the commercial real estate problems coming from the banking loan book and i can smell fire sale prices if they are really forced to liquidiate their portfolio...........

Wenn man jetzt noch miteinbezieht das die Preise sowieso schon durcj die Probleme in den Kreditbüüchern der Banken unter Druck geraten kann man sich leicht ausmalen was passiert wenn die Fonds in diesen Markt liquidieren müssen.....

FT Alphaville

Amongst the worrying features in the property market, we flag significant debt to refinance (€200bln over next 12m), significant assets for sale (€340bln over next few months we estimate, with potentially depressing impact on prices); 25% average value decline (as forecast by our European Property team, by June-09) fast eroding the banks’ cushion as LTVs move from 65% to 87%.

The banks on Tondi’s European watch have €1 trillion of on-balance sheet exposure to commercial real estate, equivalent to 12 per cent of their loan book or 1.76 times their equity base. Oh, and there’s still €43bn of CMBS.

Usually the cash portion of the portfolio is over 20 percent but some of the cash is already tied to fund new projects. Sio the net liquidity position is probably closer to 10 percent..... It is also important to note that big parts of the portfolios are international and not tied to the German market.Unfortunatley the diversification from the bubblefree German market to the mostly inflated foreign markets has happened at the worst possible time ( 2004 -2007)......

Positiv zu erwähnen ist sicher das alle großen Fonds ca. 20% oder mehr an liquiden Mitteln vorhalten und so ein gewisser Puffer besteht. Allerdings muß beachtet werden das einige dieser Mittel auch schon zweckgebunden für neue Objekte sind. Die Nettoliquiditätsposition leigt damit wohl eher um die 10%......Zum besseren Verständnis weise ich nochmal ausdrücklich darauf hin das große Teile der Portfolios international investiert sind. Leider ist ein Großteil der Umschichtungen (um die Abhängigkiet vom bubblefreien deutschen Markt zu verringern ) zu Spitzenpreisen in ausländischen Märkten erfolgt ( 2004-2007).......

KanAm, a Frankfurt-based company created in 1978, said the Grundinvest fund's assets have fallen by 300 million euros in five weeks because of withdrawals by investors. The fund has agreed to purchase Russian properties next year costing more than 1 billion euros, spokesman Michael Birnbaum said by telephone.

Peak buying in Russia....? No wonder they want their money.........

Am Top in Russland eingekauft....? Kein Wunder das die Investoren Ihre Kohle (oder was noch davon übrig ist ) zurückwollen......

On the other hand is it still a mystery to me how they can generate positive returns when rents & commercial real estate prices around the world are falling.... It will be interesting to see how the auditors will value the portfolio when the next accounting statement is due...... Wouldn´t surprise me if the results will lead to more redemtions.....

Auf der anderen Seite muß schon die Frage erlaubt sein wie es die offenen Immobilienfonds auch in Zeiten fallender Mieten und stark fallender Preise noch schaffen konstant positive Erträge zu generieren. Bin gespannt wie die Wertgutachten der Wirtschaftsprüfer zum nächsten Rechenschaftsabschluß ausfallen. Würde mich nicht überraschen wenn dann der Run auf die Fonds noch verstärkt.....

At least these investors of new money derserve no mery..... Quite a "U-Turn".... This is in partan unintendet consequence of the government actions to guarantee banking deposits....

Zumindest die Investoren die noch dieses jahr neue Kohle in Richtung Immobilienfonds geschickt haben verdienen kein Mitleid...... Was für eine Kehrtwende...... Zum großen Teil gehen diese Rückflüsse sicher auf die Aktionen der Regierung zurück Bankanlagen zukünftig zu garantieren... Schön zu sehen das auch hier wie bei etlichen anderen Interventionen immer neue Krisenherde aufgemacht werden.....

Bloomberg

German open-ended property funds attracted net inflows of 5.8 billion euros in the first eight months, bringing their total assets to 89 billion euros, according to the association of asset-management companies, known as BVI. The German government's decision on Oct. 5 to guarantee bank deposits as part of its strategy to deal with the global banking crisis may lead to withdrawals from property funds.

Börsenzeitung, 1.11.2008 Die Krise der offenen Immobilienfonds, die am Montag mit der Schließung eines kleinen, auf die USA fokussierten Fonds der Gesellschaft KanAm ihren Ausgang nahm, hat sich bis Freitag zu einem wahren Flächenbrand ausgeweitet. Zum Wochenschluss mussten drei weitere Portfolien die Anteilsrücknahme aussetzen, darunter der "CS Euroreal" von Credit Suisse Asset Management, der per Ende September 7 Mrd. Euro schwer war, sowie zwei Fonds der Degi, die seit 2008 zu Aberdeen Property Investors gehört. Der "Degi Europa" verwaltete zuletzt 1,7 Mrd. Euro, der "Degi International" 2,6 Mrd. Euro.

Die Aussetzungen sind zunächst auf drei Monate befristet. Als Gründe führen die Anbieter heftige Mittelabflüsse an, "die zum Schutze der Anleger nicht mehr bedient werden konnten", so Credit Suisse. Die Fondsschließungen bei mehreren Konkurrenzprodukten "haben in dieser Woche die Situation noch zugespitzt", heißt es bei der Degi.

Vor allem durch die Schließungen bei der Degi erreicht die Krise eine neue Dimension, da die einstige Dresdner-Bank-Tochter stark im klassischen Privatkundenvertrieb verankert ist. "Verunsicherte Privatanleger" hätten Mittel abgezogen, verlautete aus Unternehmenskreisen. Bei den anderen Anbietern hieß es noch, dass vor allem Großanleger wie Vermögensverwalter oder Dachfondsmanager für die Mittelabflüsse verantwortlich seien.

Legt man Zahlen des Bundesverbands Investment und Asset Management (BVI) zu Grunde, so waren die zwölf nun eingefrorenen Fonds per Ende September insgesamt etwa 34 Mrd. Euro schwer. Damit repräsentieren sie etwa 38 % des Gesamtvolumens der deutschen offenen Immobilienfonds. Durch die jüngsten Abflüsse dürften sich die Volumina aber verringert haben.

Vor allem Anbieter mit einem etablierten Retailgeschäft stemmen sich bislang gegen die Krise, obwohl auch sie von gestiegener Nervosität bei den Anlegern berichten. Bei der Deutsche-Bank-Tochter Rreef reduzierte sich die Liquiditätsquote des "Grundbesitz Global" seit Montag um gut 7 Prozentpunkte auf 21 %, wie ein Sprecher sagte. Der "Grundbesitz Europa" konnte seine Liquidität nahezu konstant bei knapp 37 % halten. Von einer weiterhin "komfortablen Liquidität" bei den eigenen Immobilienfonds berichtete eine Sprecherin des Sparkassen-Fondsdienstleisters DekaBank. Kein Fonds besitze weniger als 18 % Kassenbestände. Die genossenschaftliche Union Investment Real Estate, die etwa 14 Mrd. Euro verwaltet, verfügt nach Angaben eines Sprechers wie zu Wochenbeginn über etwa 2,5 Mrd. Euro freie Liquidität. Auch bei der Commerzbank-Tochter Commerz Real Estate sei die Lage "stabil", betonte ein Sprecher.

Wieder sind Anleger ausgesperrt Ft Deutschland

Offene Immobilienfonds investieren das Kapital langfristig, garantieren aber gleichzeitig die permanente Rückgabe der Anteile. Dazu müssen sie einen Teil des Kapitals beiseitelegen. Probleme gibt es, wenn - wie jetzt geschehen - viele Anteilseigner in kurzer Zeit ihr Geld zurückfordern. Es waren jedoch weniger die Privatanleger, die in Panik verkauften, sondern institutionelle Investoren sowie Dachfonds und Vermögensverwalter.

Viele haben sie dennoch eingeführt. "Einlagen ab 1 Mio. Euro werden nur nach Ablauf einer zwölfmonatigen Kündigungsfrist zurückgegeben", so ein Sprecher von Union Investment. Zusätzlich dürfen in den Immobilienfonds maximal vier Prozent des Vermögens von Großinvestoren stammen. Auch Deka Immobilien und Commerz Real haben lange Kündigungsfristen vereinbart . Bei Commerz Real betragen sie bis zu zwei Jahre. Die Höchstgrenze, bis zu der Großinvestoren in Publikumsfonds einsteigen dürfen, variiert jedoch. Bei Deka liegt die Quote bei 10 Prozent, Commerz Real hat sie auf 15 Prozent begrenzt. Die Individualvereinbarungen enthalten Sanktionen für den Fall, dass ein Großinvestor vor Ablauf der Frist Geld abzieht. In der Regel wird dann der zuvor erlassene Ausgabeaufschlag einbehalten - was bei fünf Prozent etwa einer Jahresrendite entspricht.

Die Deutsche-Bank-Tochter RREEF geht seit April noch einen Schritt weiter. Großinvestoren können seitdem nur noch über eine separate Anteilsklasse in die Publikumsfonds einsteigen. Die Mindesthaltedauer beträgt zwei Jahre, der Rücknahmeabschlag zehn Prozent. "Wir haben nach der Krise 2006 gemerkt, dass wir eine eigene Anlageklasse für institutionelle Anleger brauchen", sagt Ulrich Steinmetz, Managing Director von RREEF.

How Daimler Wasted € 7 Billion On Buybacks In Just 15 Months......

Just brilliant! I have nothing more to add that i havn´t already said at the time when the buybacks were introduced ( see Want My Buyback Back ..."Daimler Edition" & I Want My Buyback Back.....Daimler Is Doubling Down Again). All this has happened at a time when Dailmers net liquidity position ( in part due to the buybacks ) has worsened € 9 billion to almost € 46 billion ( see page 28 in Daimler Q3 Presentaion )

Das Daimlermanagement steht dem von diversen Banken in nichts nach...... Ich habe meinen Kommentaren zu diesem Thema zum Zeitpunkt der Rückkaufankündigung ( siehe Want My Buyback Back ..."Daimler Edition" & I Want My Buyback Back.....Daimler Is Doubling Down Again nichts mehr hinzuzufügen..... Hätte nur zu gerne Unrecht gehabt...... Das alles in einer Zeit während sich auch dank der Rückkäufe die Nettoliquidität binnen der letzten 9 Monate um satte 9 Mrd € auf nunmehr knapp 46 Mrd € verschlechtert hat ( siehe Seite 28 der letzten Daimler Q3 Präsentaion )


Daimler

Due to the current uncertainty in the markets Daimler temporarily suspends the further execution of its share buyback program as of October 24, 2008. Due to the suspension Daimler might not reach its initial target to buy back 10% of the outstanding shares.

I hope you can see the impact of the € 7.5 Billion buyback starting in August 2007.......

Der Effekt des Aktienrpückkaufes von € 7,5 Mrd ist klar zu erkennen, oder?

The company started its first share buyback program at the end of August 2007. By March 28, 2008, 99.8 million shares had been bought back for EUR6.2 billion.

Share Buyback based on the Authorization of the 2007 Annual Meeting
Period	No. of Shares Acquired	Average Price (EUR)	Purchased Volume (EUR)
Total	99,768,314	62.11	6,196,752,952.16
March, 2008	27,622,866	53.62	1,481,249,244.31
February 2008	22,185,448	55.69	1,235,524,406.33
December 2007	4,384,000	69.10	302,953,032.70
November 2007	16,366,000	69.05	1,130,005,849.60
October 2007	13,445,000	74.29	998,821,360.14
September 2007	14,390,000	66.72	960,165,710.94
August 2007	1,375,000	64.02	88,033,348.15

In exercise of the authorization granted by the Annual Meeting of April 9, 2008, the decision of the Board of Management allows for the buyback of 10% or approximately 96.4 million of the outstanding shares for a maximum amount of EUR6 billion

Share Buyback based on the Authorization of the 2008 Annual Meeting
Period	No. of Shares Acquired	Average Price (EUR)	Purchased Volume (EUR)
Total	37,283,831	38.86	1,448,922,311.86
Oct 2008	2,283,831	27.88	63,669,232.59
Sep 2008	7,690,000	39.43	303,203,682.07
Aug 2008	6,910,000	40.19	277,696,796.64
Jul 2008	13,850,000	38.14	528,276,120.47
Jun 2008	6,550,000	42.15	276,076,480.09