Archive - Mar 5, 2009 - Story

To close the day we present two different opinions, first one a relatively downbeat one by Goldman, and the second one modestly optimistic by Mike O'Rourke... note Mike's discussion on Buffett CDS - he brings up a very critical point that is true for all companies that have technicals preventing a true indication of risk either at the equity or debt levels.

Also, check this out: some pessimism porn from a high up Russian guy.

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MGM Mirage's travails are widely known, with the most recent iteration being yesterday's announcement that it may breach covenants in the near term.

Reader Mike points out an interesting potential selling opportunity in AIG 1 Yr CDS, which is trading on one of the most inverted curves in CDS land. As a collapse of AIG would be equivalent to the blasphemous "credit event" of U.S. Sovereign CDS, having to pay for the settlement on 1 years in AIG seems like an oddly armageddonesque prospect.

Reader Mike points out an interesting potential selling opportunity in AIG 1 Yr CDS, which is trading on one of the most inverted curves in CDS land. As a collapse of AIG would be equivalent to the blasphemous "credit event" of U.S. Sovereign CDS, having to pay for the settlement on 1 years in AIG seems like an oddly armageddonesque prospect.

The only US automotive company not to be on the taxpayer's payroll, Ford, earlier announced it would pursue a proactive debt for equity and cash exchange in which it would convert up to $10.5 billion of its $25.4 billion in debt at year end. The exchange is in fact a combination of three separate transactions:

The only US automotive company not to be on the taxpayer's payroll, Ford, earlier announced it would pursue a proactive debt for equity and cash exchange in which it would convert up to $10.5 billion of its $25.4 billion in debt at year end. The exchange is in fact a combination of three separate transactions: