Tuesday, Mar 25, 2008
Macqaurie perceived as riskier than most other financial institutions because of the inherent complexity of its products
heraldsun: Macquarie Fortress has gone sour already and it's not unreasonable to think that other bigger pieces associated with the group can unravel.
"Just because people are in a higher likelihood of an event doesn't mean it is going to happen," the fund manager said.
"ButBenchmark credit-default swap indexes in Asia rose to record levels last week as speculators bet that other financial institutions were likely to come under stress.
According to Bloomberg, the cost of buying protection on Macquarie senior debt is higher than for US banks such as Citigroup, JP Morgan Chase, Wells Fargo and Bank of America.
It is also more expensive than for most leading European banks such as Allied Irish Banks, Bank of Ireland, Royal Bank of Scotland and UBS.
Posted by chris @ 01:14 AM (135 views) Add Comment
1 Comment
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1. new user 2007 said...
These guys are Northern Rock but on a global scale. They have an incredible business model that relies on contant access to cheap credit. I am surprised no one noticed them before.