Hints and tips:
...This last deal has a fascinating echo – UBN used to be known as Barclays Bank CDO and has now grown into a regional bank with $6.3bn of assets....
...As CDOs, the majority of the securities in Maiden Lane III are packages of bonds rather than the underlying bonds themselves, unlike the Maiden Lane II portfolio....
...Maiden Lane II housed bonds backed by subprime US home loans, securities that have been in demand in recent months for their relatively high yields....
...The New York Fed earlier this year sold the remaining assets in Maiden Lane II, another AIG-related portfolio, for a $2.8bn profit. Additional reporting by Shahien Nasiripour...
...Earlier this year the New York Fed sold the remainder of Maiden Lane II, another portfolio related to AIG’s rescue, but one that housed bonds backed by pools of subprime and other risky US home loans....
...Efforts to sell Maiden Lane III assets come after the New York Fed sold the remaining assets in Maiden Lane II, another portfolio of mortgage debt that it acquired through AIG’s rescue, earlier this year...
...The bank uses the bond insurers to hedge its credit exposures on structured things like RMBS, CDOs and CLOs, racking up some $27bn of protection by March 2009, and taking hedge gains accordingly....
...Those kind of cuts could have disastrous implications for banks’ asset risk weightings under the Basel II regime....
...The bank has to sell the assets because the alternative – holding them – would incur too punitive a risk-weighted asset requirement under Basel II....
...“Notices” have also been filed with the Irish Stock Exchange for Menton CDO II, Menton CDO III and Marc I....
...Surely something to do with this announcement, issued on Friday: Fitch Ratings-London-23 May 2008: Fitch Ratings has today placed Omega Capital Investment II Plc’s Palladium CDO II (Palladium II) secured...
...But there’s also the prospect of further writedowns on its £3.8bn ABS CDO exposure or on those leveraged loans that proved so remarkably resilient in the February numbers....
...HBOS also has exposure to commercial property and faces putting more capital aside against its mortgage loans under Basel II banking rules because of the forthcoming economic downturn....
...CDOs, which pool together groups of loans or other debts and sell tranches with varying risk profiles, were the fastest growing area, with issuance up over 60 per cent in the first half to €31.5bn....
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