BizJournals Portfolio
Home >   Business Views, Opinions and Blogs >   Business Blogs >   Market Movers >  

Citi Still Partially Insulated From Siv Losses

Market Movers

by Felix Salmon
Main
VaR: For a Crappy Tool, It's Really Important at Goldman Sachs   Why Bloomberg Should Embrace Cap-and-Trade

Recent Blog Posts

Links

Dec 14 2007 12:00am EDT

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.

. □

blog comments powered by Disqus
Real Business, Real Results
Out of the 'Family'

Did anyone at Microsoft ever watch the (gasp!) offensively funny show Family Guy?

Cruz Missile Lands

Ex-Morgan Stanley exec Zoe Cruz is now heading her own hedge fund. Are Wall Street's leaders done?

Scandal Chic

Martha, Bernie and Skilling know that what you wear for court can go a long way in public perception.

spotlight on

Health Care

Bad to the Bone No More

Companies such as General Mills say they're stepping up efforts to change employees' bad behavior and promote healthier lifestyles. Read More