Skip to main content

Impacts of an Investment Banker's Fall

Here are some details of the severe repercussions should AIG fall, take this to reference on the impact of the LEH collapse:

Sept 17 (Reuters) - (The following statement was released by the ratings agency)
Sept 17 - Moody's Investors Service announced today that is has placed its ratings of certain credit derivative transactions listed below (the "Transactions") that have exposure to Lehman Brothers Holdings Inc. ("LBHI") and certain UK Lehman companies, including Lehman Brothers International (Europe) ("LB-UK" and collectively with LBHI, the "LBHI Entities"), on watch for possible downgrade. Additionally, certain other Transactions were downgraded and left under review for further possible downgrade. Moody's explained that its rating action is based upon LBHI seeking protection under Chapter 11 of the U.S. Bankruptcy Code and LB-UK being placed into administration, a procedure governed by the Insolvency Act of 1986, on September 15, 2008.
The exposure of the Transactions to LBHI Entities arises from various roles performed by them in the Transactions, including (without limitation):
-counterparty under interest rate and currency swaps
-counterparty under credit default swaps
-guarantor
-liquidity provider
-repo counterparty
-remarketing agent
-depositor
-collateral manager
-servicer
-sponsor
-cash manager
-calculation agent
-paying agent
-collateral provider
-issuer
The Moody's ratings of the following Transactions have been placed on review for possible downgrade:

Arosa Funding Limited:
(1) 3 Tranches of Series 2006-2 Dynaso 2006-1 Notes
Current Rating: Baa3, on review for downgrade
Prior Rating: Baa3
Elva Funding Plc:

(1) Series 2006-6 through Series 2006-47 Credit Linked Notes
Current Rating: All on review for downgrade
Prior Rating: Various
Onyx Funding Limited:

(1) Series 2004-1 Class A Credit Linked Synthetic Portfolio Notes
Current Rating: Aa2, on review for downgrade
Prior Rating: Aa2

(2) Series 2004-1 Class B Credit Linked Synthetic Portfolio Notes
Current Rating: A3, on review for downgrade
Prior Rating: A3


Lastly, from tomorrow onwards, I will be changing the method of writing my blog, as I will begin to make posts on my market positions and price of execution, further commentaries will be made on http://systematic-trading.blogspot.com where a brief write up on the trade and fundamental arguments will be published. 

Be sure to lend me your views and support, as I hope to make this as interesting as possible, and please forgive me if i do not place my calls as promptly as I do need to place my own trades in the market first. A trade summary will be posted on http://systematic-trading.blogspot.com weekly and monthly to keep track of performance, where I will post all such details on my Forexyard demo account.

So see ya soon.
Labels:

Comments

Post a Comment

Popular posts from this blog

Financial Crisis Management

Back in the 80s, when the US government had to deal with a crisis where the Resolution Trust Corporation, which is a holding company formed and housed within the Treasury, to deal with distressed real estate that was funded by loans and savings, the strategy was deemed a sucess where it was later reused by the HK and Indonesian government during the asian financial crisis. This indeed managed to give immediate liquidity and confidence to the markets during such turbulent times. In addition, this came as a win-win situation for the governments, because as these distressed assets were bought in a 'fire-sale' price, which was significantly cheaper than its face value, the governments made profits from such transactions, where in today's case, the similar situation applies. The target of this plan for the purpose of restoring order in the banking system, so banks will remain confident to lend, as well as to free up funds for further lending and use when the economy grows.  Afte...
Post a Comment
Read more

Market Call

After much thoughts as to how my market calls should be made in order to create the best effect and authencity, here are some details that I would like you to know: All trades made on this  trading  account no. 77104 will be 'real' live trades. A report in the format (shown on the right) will be reported on a weekly and monthly basis. Trades and market calls made by me, are only for the purpose of reference, and is no indication for you to trade and follow.  Entry and exit of trades may be in a matter of minutes, therefore, I would urge readers to follow them closely or to backtrack the results with the use of their charts for authentication of results. See ya soon on market call.
Post a Comment
Read more

Trading Rules In A Nutshell

Hi all, I'm finally done with the setup on my new Forexyard Demo account.  As on our previous posts, trading calls will officially commence from today, and we will review the result of trading on a week to week, month by month, and year by year basis (hope I'm that determined). Let us move in small strides to make this work on a long term. Summarizing some facts before we start on making market calls, here are some rules that I will be following: Stops are pre-determined before any entry of trades Size of trade is determined by the total size of the account, total risk should not be more 1% of the total value of the trading account at any time. My target return per week is to achieve 0.5% gains weekly. Compound it by 56 weeks, you should get our annual target. (Gains are tabulated on a weekly basis only) Term of trades may vary between minutes and even up to weeks. Weekly P&L on the Demo Account no. 77104 will be published at both http://systematic-trading.blogspot.com a...
2 comments
Read more