Thursday, Aug 09, 2007
"But, but we don't have any exposure to subprime".......
Bloomberg: BNP Paribas Freezes Funds as Loan Losses Roil Markets (Update5)
Aug. 9 (Bloomberg) -- BNP Paribas SA, France's biggest bank, halted withdrawals from three investment funds because it couldn't ``fairly'' value their holdings after U.S. subprime mortgage losses roiled credit markets.
The funds had about 1.6 billion euros ($2.2 billion) of assets on Aug. 7, after declining 20 percent in less than two weeks, spokesman Jonathan Mullen said today. The bank will stop calculating a net asset value for the funds, which have about a third of their money in subprime securities rated AA or higher.
Posted by lvmreader @ 05:53 PM (175 views) Add Comment
7 Comments
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1. paul said...
For once your regular barrage of posts have a lot of relevance!
This is like watching a very slow car crash. Years from now, debt instruments will have to be sold where everyone knows exactly what their levels of exposure are, but for the time being it's buyer beware!
2. lvmreader said...
@Paul, I will take that as a compliment.
Perhaps it's due to the Asahi Super Dry I have been drinking lately. For breakfast.
Great beer - satin smooth, no aftertase, slips down easy and is a great aid to sleep. And research apparently.
Go back and read all my posts - they always do have relevance.
Just some of the readership haven't got the context when they make comments about "relevance".
I saw this CDO meltdown coming 3 years ago. I would have thought it would have come apart in 2005, but hey ho.
It's on now.
3. paul said...
It was a compliment, lvm.
I think Becks make a better breakfast beer, with no additives, too.
Ze Germans are keen on zee purity, you see?
4. japanese uncle said...
ivmreader
Just FYI, the success of the Asahi Super Dry was simply development of a reasonably tasty bear, plus dumping of all pile-up stock (if any) in circulation/distribution simply to supply as fresh as possible beer to consumers. From then on, a virtuous cycle of great demand/consumption and massive/speedy supply commenced. The key concept was 'beer is a perishable product'. When I first tasted Super Dry circa 1987 when it was launched, I was stunned by its sheer crispness. No wonder, it was just a week old, direct from the brewery. Also FYI, the Super Dry available in the UK does not come from Japan but from Czech Republic (licence production) and not as good as the original, I am afraid.
5. japanese uncle said...
You can rarely find good lager in the UK, presumably because ale and bitter were the mainstream drink in this country. Carling Premium was one of the few exceptions. German draft beer is excellent, the real thing! Hochbrau in Munich was particularly good (Japanese lager is generally the direct decendent from German beer, and excellent, I must admit.). The sad mishandling of lager type beer in this country is that, beer with a lot of head in the jug is not tolerated thanks to the stingy customers (I heard about the legendary inspectors whose job was to check full one pint is precisely served). Lager must be served with substantial head; firstly head means considerable amount of CO2 has been released from the bear making it less 'kicky' and mild; secondly head will serve as a lid to stop further release of CO2, keeping it adequately kicky all the time. Thus for a pint of lager, you need a 1.3 pint jug. I am afraid people do not know how to serve and appreciate lager in this country, though ale and bitter are superb and perfectly served at the right temparature.
6. japanese uncle said...
One more point; Lager draft beer must be finished in at most five gulps, ideally in three gulps (in order for you to do it, the beer must be mild with less kick. So Germans do know how to enjoy draft beer. They finish one litter jog in three or four gulps. I believe it reflects the cultural difference, i.e. in Britain, pub is a place for chatting over a pint, sometimes taking two hours to finish a pint. People sip beer and bitter/ale is perfect for this purpose, though these days the young and the reckless tend to do chug-a-lug like Japanese students. Whereas German beer halls are not the place for chatting. It's the place for singing yelling and dancing, and eating sausages and sourkraut. Chug-a-lug is a virture there.
7. lvmreader said...
@Japanese Uncle
You really know your beer!
I have only tried Asahi, Sapporo and Kirin from Japan. Next time I am over there (in a few weeks) I will try some different ones.
I didn't realise the cultural ties that bound Japanese and German beers. Coors then stole this Japanese innovation of "fresh beer with a made-on/born date sticker". That is very interesting.
Interestingly enough, the way drinks in general are marketed can teach us a lot how to market *anything* esp Financial Products or Financial Education.