Comments on: Standard Chartered Drops Plans to Rescue $7.15 Billion SIV http://www.nakedcapitalism.com/2008/02/standard-chartered-drops-plans-to.html Sun, 22 Nov 2009 04:39:16 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/02/standard-chartered-drops-plans-to.html#comment-4251 Anonymous Wed, 20 Feb 2008 19:56:00 +0000 http://www.nakedcapitalism.com/2008/02/standard-chartered-drops-plans-to-rescue-715-billion-siv/#comment-4251 It's the beginning of the end for some. It’s the beginning of the end for some.

]]> By: docs holiday helpers http://www.nakedcapitalism.com/2008/02/standard-chartered-drops-plans-to.html#comment-4244 docs holiday helpers Wed, 20 Feb 2008 17:02:00 +0000 http://www.nakedcapitalism.com/2008/02/standard-chartered-drops-plans-to-rescue-715-billion-siv/#comment-4244 KRunched Financial Holdings<br/>Talk about obfuscation. From KKR Financial Holdings, filed with the SEC late on Tuesday:<br/>On February 15, 2008, KKR Financial Holdings LLC (the “Company”) entered into an Extension Amendment Agreement (the “Amendment Agreement”) with the holders of non-recourse secured liquidity notes (the “SLNs”) issued by two asset-backed secured liquidity note conduit facilities (the “Facilities”) to allow for restructuring discussions. On October 18, 2007,<br/><br/>http://ftalphaville.ft.com/blog/...ncial-holdings/ <br/><br/><br/>Back in the summer KFH had more than $5bn of mortgages financed by short term commercial paper. Since then that seems to have mutated into a $7.6bn portfolio of corporate debt. (Yes, after the residential property blow up it moved into leveraged loans.) We can assume that unwinding all that on a fire sale basis will hurt - and yet KFH was busy declaring a dividend (of 50 cents) to shareholders just three weeks ago KRunched Financial Holdings
Talk about obfuscation. From KKR Financial Holdings, filed with the SEC late on Tuesday:
On February 15, 2008, KKR Financial Holdings LLC (the “Company”) entered into an Extension Amendment Agreement (the “Amendment Agreement”) with the holders of non-recourse secured liquidity notes (the “SLNs”) issued by two asset-backed secured liquidity note conduit facilities (the “Facilities”) to allow for restructuring discussions. On October 18, 2007,

http://ftalphaville.ft.com/blog/…ncial-holdings/

Back in the summer KFH had more than $5bn of mortgages financed by short term commercial paper. Since then that seems to have mutated into a $7.6bn portfolio of corporate debt. (Yes, after the residential property blow up it moved into leveraged loans.) We can assume that unwinding all that on a fire sale basis will hurt – and yet KFH was busy declaring a dividend (of 50 cents) to shareholders just three weeks ago

]]> By: Scooter99 http://www.nakedcapitalism.com/2008/02/standard-chartered-drops-plans-to.html#comment-4238 Scooter99 Wed, 20 Feb 2008 14:12:00 +0000 http://www.nakedcapitalism.com/2008/02/standard-chartered-drops-plans-to-rescue-715-billion-siv/#comment-4238 let's not get too dramatic here. it's just business. in a few years when everyone is greedy again, past reputational issues will be forgotten. i remember in '98 when russia defaulted on its debt some rocket scientist hedge fund manager was quoted in the journal as saying russian securities are toxic waste that no one would ever buy again. look at the market today.<br/><br/>in a few years standard will offer another new product with a sexy yield and investors will pile in. no one will remember this. it's not right, but such is the nature of the business and investor.<br/><br/>i agree that in the short term, things may ouch. let’s not get too dramatic here. it’s just business. in a few years when everyone is greedy again, past reputational issues will be forgotten. i remember in ‘98 when russia defaulted on its debt some rocket scientist hedge fund manager was quoted in the journal as saying russian securities are toxic waste that no one would ever buy again. look at the market today.

in a few years standard will offer another new product with a sexy yield and investors will pile in. no one will remember this. it’s not right, but such is the nature of the business and investor.

i agree that in the short term, things may ouch.

]]> By: SPECTRE of Deflation http://www.nakedcapitalism.com/2008/02/standard-chartered-drops-plans-to.html#comment-4234 SPECTRE of Deflation Wed, 20 Feb 2008 13:03:00 +0000 http://www.nakedcapitalism.com/2008/02/standard-chartered-drops-plans-to-rescue-715-billion-siv/#comment-4234 Business walking away from deals, and consumers walking away from debt. It's a recipe for disaster unfolding right before our eyes. Business walking away from deals, and consumers walking away from debt. It’s a recipe for disaster unfolding right before our eyes.

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