{"id":195101,"date":"2008-07-30T05:01:00","date_gmt":"2008-07-30T10:01:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/07\/30\/merrill-lynch-cdo-sale-at-far-less-than-22%c2%a2-on-the-dollar\/"},"modified":"2008-07-30T05:01:00","modified_gmt":"2008-07-30T10:01:00","slug":"merrill-lynch-cdo-sale-at-far-less-than-22%c2%a2-on-the-dollar","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/07\/30\/merrill-lynch-cdo-sale-at-far-less-than-22%c2%a2-on-the-dollar\/","title":{"rendered":"Merrill Lynch CDO Sale at Far Less than 22\u00a2 on the Dollar"},"content":{"rendered":"<p>Yesterday, I wrote about a <a href=\"http:\/\/40yrs.blogspot.com\/2008\/07\/merrill-lynch-plans-another-multi.html\">5.7 billion write-down that Merril was taking on CDOs<\/a>.<\/p>\n<p>It turns out that the numbers, which showed them getting 22\u00a2 on the dollar are completely bogus.  They took an even bigger haircut than reported.<\/p>\n<p><a href=\"http:\/\/www.rgemonitor.com\/roubini-monitor\/253164\/super-senior_tranches_of_cdos_are_worth_much_less_than_22_cents_on_the_dollar_another_ponzi_scheme_of_selling_toxic_garbage_with_more_leverage\">Nouriel Roubin has the details<\/a>, but the cliff notes version is:<\/p>\n<ul>\n<li>Merrill financed the purchase.<\/li>\n<li>The finance rate is at sub market rates.<\/li>\n<li>The security for the deal is the same CDO crap that they are selling<\/li>\n<li>Merrill has, &#8220;would absorb any losses on the CDOs beyond $1.68 billion&#8221;<\/li>\n<\/ul>\n<p>Their face value is $30.6 billion, so this figures to a 5.5\u00a2 on the dollar worst case.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday, I wrote about a 5.7 billion write-down that Merril was taking on CDOs. It turns out that the numbers, which showed them getting 22\u00a2 on the dollar are completely bogus. They took an even bigger haircut than reported. Nouriel Roubin has the details, but the cliff notes version is: Merrill financed the purchase. The &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,1004],"tags":[],"class_list":["post-195101","post","type-post","status-publish","format-standard","hentry","category-bubble","category-finance"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/195101"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=195101"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/195101\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=195101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=195101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=195101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}