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

Is Ubs Guaranteeing Blackrocks Returns

Market Movers

by Felix Salmon
Main
Are More Patents Really a Good Thing?   Citibank Germany: For the Chop?

Recent Blog Posts

Links

May 08 2008 12:00am EDT

Is UBS Guaranteeing BlackRock's Returns?

Michael de la Merced got a timely interview with BlackRock's Laurence Fink this week, and the resulting story is well worth reading. But one question is not cleared up: what does this mean, exactly, on the subject of the $15 billion of subprime paper that BlackRock is buying from UBS?

Mr Fink is being cautious, demanding a 15pc return on the assets or UBS will have to take further writedowns, but the deal remains significant.

Is UBS really guaranteeing BlackRock a 15% return? And if so, what's the point of "selling" the paper to BlackRock in the first place?

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