Monday, Jun 16, 2008

Goldman close to restructured $7bn SIV deal

FT.com: Goldman close to restructured $7bn SIV deal

I don't understand the detail of this. Does anybody else?

Posted by whiteknight @ 11:40 PM (481 views) Add Comment

5 Comments

1. whiteknight said...

How much will be auctioned off to establish a price?

Who are the investors in the new off-balance sheet vehicle?

Monday, June 16, 2008 11:42PM Report Comment
 

2. mark wadsworth said...

Yes. Having stiffed investors out of a shed load of money, these investments banks and advisors have creamed off another few per cent in fees for some bit of financial alchemy, at the end of which investors are none the wiser and certainly none the richer.

i.e. no I can't explain what they've done either.

Tuesday, June 17, 2008 07:43AM Report Comment
 

3. Verymeanreversion said...

Looks like an attempt at price discovery. First step to getting the MBS market moving again.

Tuesday, June 17, 2008 08:00AM Report Comment
 

4. Moley20 said...

Same crap. different name.
Debt is not a security>>>>>. The soon Investor realise the better>

Tuesday, June 17, 2008 08:58AM Report Comment
 

5. Chandellina said...

it means nothing basically. only a small bit of assets will be sold - more volume is done by hedge funds, etc. on any given day.
what is happening is goldman auctions some assets held by the SIV. based on those prices, it buys the rest of the assets, then moves them into a new vehicle. The vehicle pays back Goldman by issuing debt to the original investors, corresponding with their original claims. everyone hopes the assets pay out as they mature.

Tuesday, June 17, 2008 07:40PM Report Comment
 

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