Write-Offs: 12.21.07

Posted by , Dec 21, 2007 4:55PM

There's no more questions. Let's get the elf out of here.

Posted by Johny Banker, Dec 21, 2007 5:12PM

pffft... I'll be working 4 days next week.... wusses....

Posted by AJ, Dec 21, 2007 5:34PM

Merry Christmas! I'm outta here until after New Years!

Posted by Anal_yst, Dec 22, 2007 7:19PM

I wonder which one of those characters Sykes fancies himself...

Posted by , Dec 24, 2007 9:50AM

THE MARKET IS FRIGGEN OPEN. WHERE THE HELL ARE YOU GUYS.

Posted by , Dec 24, 2007 11:02AM

Merrill / Temasek / GE anyone?

Posted by , Dec 24, 2007 11:31AM

Ah, the journalists surely looove their lifestyle. Christmas week -- let's take off. A business day -- why wake up before noon? Mind you the lifestyle is highly predictive of their pay.

Posted by Anal_yst, Dec 24, 2007 12:26PM

Looks like we're editing DB today kids...

How about FedEx, about to hit a low not seen since late 2005, legal troubles, union pressure, fun times for all.

Posted by , Dec 24, 2007 12:39PM

11:31-- you're a prick...if they suck so much, why read db at all? you take any vacation time during the year, buddy? ANY AT ALL?

Posted by Nominate me, Dec 24, 2007 12:59PM

How slow is it? So slow that we've been checking out trades every hour on the hour, just to make sure I walk at 1:30.

Have a great holiday bros.

Posted by Captain Stabbin, Dec 24, 2007 1:21PM

@ 12:39 - lay off the juice man, it sucks bein @ work today, but 11:31 did kinda make maybe 1/2 of a decent point (key phrase "kinda, 1/2"). Chillax son.

Closing bell a day or two (in DB time) had an article about what happens when the counterparties on CDS' go bust (or are about to) and everyone's hedges go to sh!t, interesting there wasn't more talk about this seeming inevitable situation...

Posted by mrpink, Dec 24, 2007 1:27PM

Merry Chrismas bromeisters!

Posted by Anal_yst, Dec 24, 2007 1:36PM

Since I'm still here, and bored, how about this little gem from the Post today, essentially straight up pointing the finger @ Goldman and Paulson.

http://www.nypost.com/seven/12202007/business/goldman_astounds_street_with_inside_trac_654261.htm

Posted by Johny Banker, Dec 24, 2007 2:14PM

LOL!!! Anal_yst.... nice link.... makes the day easier... 2:13 pm and still have about 2 hours to go....... they better give me a good bonus! or ELSE!!!

Posted by Anal_yst, Dec 24, 2007 3:47PM

In keeping up the selected theme of NY POST reports of late and Goldman essentially dominating where everyone else is getting sharted on, I give you my last post of the day (god willing) as unofficial surrogate DB editor:

LONDON (Dow Jones)--The receivers of troubled structured investment vehicle
SIV Portfolio PLC, formerly known as Cheyne Finance, have agreed to sell the $7 billion portfolio of assets to Goldman Sachs (GS) as part of the SIV's
restructuring, according to a statement to the Irish Stock Exchange Monday.
If successful, the deal will end months of investor uncertainty and will be
the first restructuring of a stand-alone SIV. Goldman Sachs will be the
restructuring's arranger and liquidity provider, according to receiver Neville
Kahn of Deloitte & Touche LLP, transferring the assets to an off-balance sheet special-purpose vehicle.
"We are sure other vehicles will be watching what we are doing closely...it
could be precedent-setting," said Kahn.
He said investors wanted different outcomes and would be offered a free choice of cash-out, strip of assets or the opportunity to reinvest in the new vehicle.
Receivers plan a January roadshow to explain the structure to investors.
Existing senior creditors can remain invested and try to recover their money
by accepting a flexible longer-term debt instrument which earns income or can
be sold in exchange for assets at a later date. Creditors will also have the
choice of accepting a discounted cash pay-out or take a pro-rata strip of the
assets - what's known as a "vertical slice."
Kahn wouldn't speculate about what price of cash option senior investors would
be offered, but said it will be set through an auction process. The cash option
will be funded by an auction of vertical strips of the portfolio in late
January or early February. The volume of assets for sale will be set once all
investors have chosen an option, sometime in late January.
Mezzanine noteholders will be able to invest in the new structure through a
form of participation note which will return something to those investors as
the portfolio recovers in value and once all senior creditors have been paid
out. However, capital noteholders will be wiped out.
Of the $7 billion of assets, $1.4 billion is cash and $720 million comprises
mezzanine and junior capital notes. The rest is mainly commercial paper and
medium-term notes.
In the statement the receivers said the deal is non-binding but all parties
are still negotiating reaching a binding agreement and finalizing
documentation.
The agreement follows recent detailed talks with different bidders and
consultation with the informal creditors' committees, the receivers said.
SIV Portfolio, formerly Cheyne Finance, was managed by London hedge-fund group
Cheyne Capital Management (UK) LLP, and was one of the first SIVs to have
trouble funding itself in August.
SIVs issue short-term debt to buy longer-dated assets, pocketing the
difference on interest paid and received. Many ran into trouble in August when
commercial-paper markets shut down for most issuers after investors became
concerned about the quality of some of the underlying assets.
Cheyne Finance entered receivership Sept. 5 after having drawn down its three
liquidity lines to help repay maturing debt. The SIV's receiver, Deloitte &
Touche, has been looking for a buyer of its portfolio or a refinancing
agreement with creditors.
In October the receivers chose Royal Bank of Scotland Group PLC (RBS) as
arranger, but that deal fell apart as the market deteriorated.

Posted by Iomegaian, Dec 24, 2007 6:50PM

It's amazing that Sykes can be such a prick and yet he's a good writer. Levin, you've got competition!