Comments on: Wall Street Journal’s Cursory Story on Collateralized Debt Obligations http://www.nakedcapitalism.com/2007/12/wall-street-journals-cursory-story-on_27.html Mon, 23 Nov 2009 08:18:14 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Ken Houghton http://www.nakedcapitalism.com/2007/12/wall-street-journals-cursory-story-on_27.html#comment-2750 Ken Houghton Fri, 28 Dec 2007 22:17:00 +0000 http://www.nakedcapitalism.com/2007/12/wall-street-journals-cursory-story-on-collateralized-debt-obligations/#comment-2750 ISDA has continually claimed that CDSes are in its domain, and actual insurance companies have little interest in writing something that is about 90% an Interbank market; they have reinsurance products for that.<br/><br/>So the answer to foesskewered's question("Could this be another example of how practical reality warps the technical intention behind the instrument?") would be "No." ISDA has continually claimed that CDSes are in its domain, and actual insurance companies have little interest in writing something that is about 90% an Interbank market; they have reinsurance products for that.

So the answer to foesskewered’s question(”Could this be another example of how practical reality warps the technical intention behind the instrument?”) would be “No.”

]]> By: doc http://www.nakedcapitalism.com/2007/12/wall-street-journals-cursory-story-on_27.html#comment-2734 doc Fri, 28 Dec 2007 06:03:00 +0000 http://www.nakedcapitalism.com/2007/12/wall-street-journals-cursory-story-on-collateralized-debt-obligations/#comment-2734 Yves,<br/><br/>I just read this from the other day, and this story sort of re-enforces the notion that journalism in America is going downhill, e.g, WSJ and the "Murdoch template":<br/><br/>The Federal Communications Commission voted three-to-two on party lines last week to approve a measure that would increase media consolidation. The new rule pushed through by FCC Chairman Kevin Martin lifts a thirty-year old ban on companies seeking to own both a newspaper and television or radio station in the same city. Michael Copps was one of two FCC Commissioners to vote against the rule.<br/><br/>Worth a hardcore story! Yves,

I just read this from the other day, and this story sort of re-enforces the notion that journalism in America is going downhill, e.g, WSJ and the “Murdoch template”:

The Federal Communications Commission voted three-to-two on party lines last week to approve a measure that would increase media consolidation. The new rule pushed through by FCC Chairman Kevin Martin lifts a thirty-year old ban on companies seeking to own both a newspaper and television or radio station in the same city. Michael Copps was one of two FCC Commissioners to vote against the rule.

Worth a hardcore story!

]]> By: foesskewered http://www.nakedcapitalism.com/2007/12/wall-street-journals-cursory-story-on_27.html#comment-2730 foesskewered Fri, 28 Dec 2007 02:00:00 +0000 http://www.nakedcapitalism.com/2007/12/wall-street-journals-cursory-story-on-collateralized-debt-obligations/#comment-2730 Frankly, anyone who's watched the whole Murdoch saga in British newspapers in the 90s would jump up and say, murdoch the dictator but honestly, sounds more like half-hearted attempt at giving the human angle to a story that's getting really tired like this year is at this point of tine. Hey, bloomberg did an entire series that more or less focussed on one particular subprime mortgage firm in california but they at least cover the bases. <br/><br/>there is one point that I would disagree with yves, that's on credit default swaps, yeah, technically they offer insurance against default but in practice, they seem increasingly to act as derivatives/indexes of the perception of credit risk. Could this be another example of how practical reality warps the technical intention behind the instrument? Frankly, anyone who’s watched the whole Murdoch saga in British newspapers in the 90s would jump up and say, murdoch the dictator but honestly, sounds more like half-hearted attempt at giving the human angle to a story that’s getting really tired like this year is at this point of tine. Hey, bloomberg did an entire series that more or less focussed on one particular subprime mortgage firm in california but they at least cover the bases.

there is one point that I would disagree with yves, that’s on credit default swaps, yeah, technically they offer insurance against default but in practice, they seem increasingly to act as derivatives/indexes of the perception of credit risk. Could this be another example of how practical reality warps the technical intention behind the instrument?

]]> By: doc http://www.nakedcapitalism.com/2007/12/wall-street-journals-cursory-story-on_27.html#comment-2726 doc Thu, 27 Dec 2007 17:50:00 +0000 http://www.nakedcapitalism.com/2007/12/wall-street-journals-cursory-story-on-collateralized-debt-obligations/#comment-2726 I think that story will need updated by WSJ:<br/><br/>Goldman Sach analysts said Thursday that Citigroup Inc. may cut its dividend by up to 40 percent as the financial giant faces mortgage-related writeoffs that could total $18.7 billion in the fourth quarter.<br/><br/>According to Reuters, who obtained a copy of an investor newsletter penned by Goldman analysts William F. Tanona, Betsy Miller and Neil C. Sanyal, Citigroup will announce write-downs as much as 70 percent greater than the $8 to $11 billion forecast in early November. I think that story will need updated by WSJ:

Goldman Sach analysts said Thursday that Citigroup Inc. may cut its dividend by up to 40 percent as the financial giant faces mortgage-related writeoffs that could total $18.7 billion in the fourth quarter.

According to Reuters, who obtained a copy of an investor newsletter penned by Goldman analysts William F. Tanona, Betsy Miller and Neil C. Sanyal, Citigroup will announce write-downs as much as 70 percent greater than the $8 to $11 billion forecast in early November.

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