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Category Archives: Bonds

Northern Rock - what to do with junk equity?

20-Nov-07

There’s much talk in the City of junk bonds, many of them issued by offshore SPVs, SIVs and CDOs. There’s little talk of “junk equity”. But that’s what Northern Rock has now got.
Let me explain. The balance sheet of Northern Rock shows that just 4% of its money has been provided by its shareholders. 70% […]

Also filed in Economics | | Comments (2) »

The markets cannot cover their own risk

19-Nov-07

I note that the FT has reported that:
The plan for a $75bn superfund to buy assets from cash-strapped structured investment vehicles appears to be gaining support among sceptical institutions, amid concern that SIVs might start dumping bank debt.
The planned superfund, which is being put together by Citigroup, Bank of America and JPMorgan Chase with the […]

Also filed in Economics, Tax Havens, Trusts | | Comments (0) »
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