Hints and tips:
..., found the credit rating agency misled investors by giving AAA ratings to toxic financial products that lost almost all their value....
...Debt issued by Australia, Canada, Denmark, Finland, Germany, Norway, Sweden, the UK and Switzerland is still rated AAA by S&P, along with that of Luxembourg, Liechtenstein, Hong Kong and Singapore....
...From the price follows the P&L: …the price quoted to an external customer will be greater than that cost, the difference generating the bank’s profit and the trader’s hoped-for day-one P&L.)...
...Friday… [Bloomberg] France will lose its AAA rating for the first time, Agence France-Presse reported, citing an unidentified government official....
...What this means is that a holder of credit risk who is marking to market suffers some P&L volatility that is unrelated to default risk (as well as some that is)....
...L. 11.50 Welcome to the Usain Bolt economy....
...The actual downgrade was just 1 notch, from A(L) to BBB(H). You should also note that our rating on Portugal of BBB(H) is at the same level as at least one other rating agency....
...L&T gets $889m for hydrocarbon projects in UAE, Thailand Larsen & Toubro (L&T) has bagged three international orders totalling $889m for hydrocarbon projects, the $11.7bn engineering conglomerate said on...
...RATING COULD FALL TO AA+ FROM AAA– REUTERS INSIDER S&P GLOBAL SOVEREIGN RATINGS HEAD SAYS U.S....
...As a result, the two CLO positions were no longer credit protected, causing a EUR 58 million writedown on the credit default swaps through the P&L....
...JPMorgan, which told clients on Monday that L&G was likely to miss forecasts, kept its “underweight” rating and argued that profits had been inflated by selling AAA-rated securities and buying lower grades...
...Also, Day1 P&L treatment of many of the transactions meant that employee remuneration (including bonuses) was not directly impacted by the longer term development of positions created....
...A drop of 70% for the S+P is absolutely possible....
...There wasn’t enough management of the balance sheet and the traders were paid on their own revenues or even their own P&L’s and without enough collaboration and discussion across the entire firm....
...PERSHING SQUARE CAPITAL MANAGEMENT, L.P. Respectfully submitted, William A. Ackman...
...Given a lack of defaults, the instruments should perform fine if one can survive the P&L volatility of the tranches....
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