The EurAsian Global Distressed Asset Acquisition Initiative

Last month I penned the piece Abu Dhabi & the UAE Can Leverage PetroDollar profits to capitalize on the plight of EU nations, wherein I announced that I was putting together an initiative to capitalize on the inevitable deleveraging of European (and soon Asian) banks and sovereign (as well as quasi-sovereign) nations. Those institutions and UHNW individuals who are interested in said initiative should click through and read thearticle andcontact me afterwardas there has already been significant indications of interest. I already have my analysts going through a plethora of opportunities, identifying hard assets first, and financial assets with deep, deep discounts in mind (100%+ cash on cash return within one year, unlevered).

As fate, and an adherence to viewing things analytically, would have it the opportunities may come to bear sooner than expected - to wit: European Banks Could Deleverage by $2.6 Trillion: IMF

A drastic contraction of European bank balance sheets during the next 18 months could jeopardise financial stability and economic growth, according to the IMF. The FT reports.

This is simply a reiteration of my warnings from as far back as 14 months ago, proffered in explicit detail, simple reference Is Another Banking Crisis Inevitable? (Attention subscribers: The subscription document is available as well The Inevitability of Another Bank Crisis)

Banks NPAs to total loans

Source: IMF, Boombust research and analytics

Euro banks remain weak as compared to their US counterparts

Later on today I will post the first of several documents to professional/insitutional subscribers detailing what I have in mind in this potential asset grab.

Comments

[Marta45]

Improving any of these 4 components will increase overall washing but there will be a price associated with each. The price of each of these components will change based on program and there may well be other restrictions in position. Tank Cleaning services UAE

[Benjamin Glutton]

though I realize de-leveraging has an Econ 101 meaning it seems to have morphed into withholding the ability to rollover credit so that CDS / control *Print* save the banks and roil markets to advantaged access.

too brief?

[disabledvet]

i'm not sure how to "capitalize" on anything in here...other than by owning an oil or trucking company. the problem as i see it is the private capital markets have for all intents and purposes collapsed. with governments running everything nothing is "right" in the market sense. Treasury yields should be double digits...instead they are zero. The dollar is pretty much worthless...but that makes me want to buy the foreign stuff even less. Equities are surging...more than likely due to the combination mentioned above (zero percent financing for government and a worthless dollar...which the world doesn't complain about publicly strangely enough.) Anywho "i'm content to sit tight." The GREATEST fools have been the one's who haven't been buying into this extraordinary rally. Us Capitalists will find a State to reside in where we can be treated fairly and without a police state and their media minions looking over our shoulder or watch us in our bedroom (goodbye New York!) there's a lot of Open Range in America. I'm content will letting the government take care of the criminals...rather than being one myself.

[Ghordius]

As usual solid legwork, Reggie. I'm a happy customer and fan of yours.

Re: "inevitable deleveraging" of european banks, you do keep in mind that the average small and medium bank gives much more direct loans to businesses (that are on average smaller and more family-owned) than the US or UK counterparts, do you?

I don't expect you belong to that legion of Anglosphere analysts that expect them to give up their "barbarous" ways and start a "progressive" wave of IPOs, bonds offerings and so on (something that makes banks very, very happy). Or do you?