Home > Views > Blogs > Market Movers > Citi: Still Partially Insulated from SIV Losses
EMAIL
PRINT
RSS
SHARE
TEXT SIZE:
SHARE
Send a copy to me

Separate multiple email addresses (max 20) with commas.

0/1500

Main
Lufthansa: No Savior for JetBlue   Criminals in the CEO Suite, Jewelry ...
Dec 14 2007 9:36AM EST

Citi: Still Partially Insulated from SIV Losses

Alea has the scoop on Citi's SIVs: they'll have to decline in value by $2.5 billion, or more than 5%, before Citi takes a penny in losses. No wonder Citi found it relatively easy to sell tens of billions of dollars of the SIV assets back to the junior investors: even this bail-in isn't going to save those investors.

Interestingly, only 28% of Citi's SIV assets are mortgage-related; fully 60% of the assets are invested in the debt of financial institutions. Sure, those institutions themselves are being hit by mortgage-related losses. But I remember that the first CPDO to fail was one which invested in financial-institution debt. Maybe bank bonds are the new subprime mortgages.

See more in

Loading...

Add Your Comment

Required fields are marked with an asterisk (*)
Add a comment

Recent Blog Posts

Archive

Previous
Dec
2008
Next


Also in Portfolio.com
Most Read
Most Emailed
Recently Commented