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how do you blow up now? you made it through the tough part already.
that's not entirely accurate... wait for the second wave
agreed, but its weird to do a bwic into a strong mkt. they can't / haven't been able to sell any of this stuff and now are flushing the whole thing? its weird
For other idiots like me...
thanks. I guess I qualify
Dude, ZH has me flying all over the internet trying to keep up. This is the best thing here, no dumbing down- I have been forced to learn more here than in 4 years of university.
Good tunes too.
$5.5mil of Fountainebleu LV
CalPERS just walked away from a CRE office building in Portland. Bought it in 2007. CalPERS is hurting, but far from broke. If they're just giving stuff to the bank, than anyone will.
Institutions are going to start dropping junk and get their balance sheets back to reality, even if the banks refuse to.
And yet CalP is buying into CRE again; trying to double-down on a 6, I guess.
Possibly a forced liquidation from a significant client of the fund. i.e. "Give us our money back, or else".
Maybe management wants out..... [lol]
thanks that is great info 0 hedge still way ahead of everyone....
How do we know for sure that the manageris a single fund blowing up? couldn't it be a bulge bracket asset mgr doing some housekeeping?
i guess that's what happens with portfolio marginging....and for the individual investor, that's not Reg T (1x1) leverage, institutional leverging is 1x5/6...my guess is those securities are "leverage" worthy...maybe not a full 1 but at least a .5
with 8-12x leverage the equity is still a zero so this wouldn't be a client asking for money back, the money is already gone for the equity investor. It could be that a lender has been allowing them to operate out of compliance hoping the market would come back a bit, now that it has they are getting out with a minor loss before the loan market crashes again.
non-event. so much cash chasing secured loans right now that this BWIC will get absored no problem.
Absorbing this BWIC? sure, but that's not the point. The forerunners of a tsunami are only a foot high, but have a lot of momentum.
More likely than a fund blowing up, this is a fund taking advantage of strength in the loan market and selling at an opportune time. If this thing were highly levered and bought before the beginning of this year, it would already be gone.
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