Entry: Haphazard Harem

posted by IA

Mar 17, 2008 10:40AM

Sounds like Ms. Dupre's a widely-held equity. Her nether regions are a depleted asset in a sinking fund. I could go on...

Entry: Opening Bell: 3.19.08

posted by IA

Mar 19, 2008 9:06AM

Can people please stop saying that JPM got a great deal just because 383 Madison is worth more than the equity of BSC? They're buying all the liabilities too, not just the assets. Enron's HQ was worth more than Enron's equity too. It doesn't mean that Enron's common was a bargain when it was trading at <$1

Entry: WHICH HEDGE FUND?

posted by IA

Mar 27, 2008 5:05PM

SAC

Because she's a tranny.

Entry: I think I'm turning Japanese, I Really Think So.

posted by IA

Mar 28, 2008 10:12AM

Notice how EP avoided the central question.

This is my favorite comment thread ever - it almost makes up for the tranny picture yesterday.

Entry: Citi: We’ve Run Out Of Suckers On The Outside, Any Takers In Here?

posted by IA

Mar 28, 2008 1:35PM

I had this offered to me at Morgan Stanley as an analyst two years ago, so I don't think this is anything groundbreaking.

It does make you think about whether it's wise for an institution to have assets whose quality is linked to the continuing employment of their own employees. Presumably there's a big slug of correlation there - the moment the bank goes down and the employees start losing their jobs, the mortgages are going to be worthless, thereby hitting the asset side of the balance sheet, thereby causing more employees to be let go, etc.

I assume that there are few enough of these Citi mortgages that it's not that big of a deal, though.

Entry: If You Have To Ask, You Can't Afford It

posted by IA

Apr 21, 2008 11:51AM

Has anyone from SNL remained funny past the age of 45, aside from Bill Murray?

Entry: Portfolio Columnists Should Not Throw Stones

posted by IA

Apr 24, 2008 3:52PM

It's not a good sign when Muffie's author bio is longer than the actual post.

I miss Carney.

Entry: PIK Toggles And The Credit Crisis.

posted by IA

May 19, 2008 2:02PM

That's pretty much the definition of a negative-convexity investment, no? When times are bad, you stop getting cash out of the trade as the PIK begins to toggle. When times are good the sponsor makes a 40% IRR and you get your modest fixed income return.