{"id":198233,"date":"2007-11-29T22:42:00","date_gmt":"2007-11-30T03:42:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/11\/29\/whiskey-tango-foxtrot-florida-short-term-funds-parked-in-cdos-and-other-shaky-investments\/"},"modified":"2007-11-29T22:42:00","modified_gmt":"2007-11-30T03:42:00","slug":"whiskey-tango-foxtrot-florida-short-term-funds-parked-in-cdos-and-other-shaky-investments","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/11\/29\/whiskey-tango-foxtrot-florida-short-term-funds-parked-in-cdos-and-other-shaky-investments\/","title":{"rendered":"Whiskey Tango Foxtrot????!  Florida SHORT TERM Funds Parked in CDOs and Other Shaky Investments???"},"content":{"rendered":"<p>We are talking accounts used for day to day expenses and salaries, and when it was discovered that. &#8220;after learning that the money- market fund contained more than $700 million of defaulted debt&#8221;, <a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=aAktjXSQujdM&amp;refer=home\">there was a run on the fund<\/a>, with over 35%, over $10 Billion of the $28 Billion in the fund, of its assets being withdrawn.<\/p>\n<p>As a result, they have suspended withdrawals from the fund, which may leave some governments <b>unable to pay their employees this week<\/b>.  (See also <a href=\"http:\/\/www.orlandosentinel.com\/news\/local\/state\/orl-bk-statefund112907,0,5698387.story\">here<\/a>.)<\/p>\n<p>It&#8217;s gets better: <\/p>\n<blockquote><p><span style=\"color: rgb(0, 0, 153);\">Stipanovich raised the possibility of having the state pension fund shoulder the risk of some of the troubled securities with a credit-default swap, through which the retirement fund would guarantee the debt in exchange for an insurance premium.<\/span><b><\/p>\n<p><span style=\"color: rgb(0, 0, 153);\">&#8220;It will be a wonderful diversifier<\/span><\/b>,&#8221; Stipanovich said.<\/p>\n<p><span style=\"color: rgb(0, 0, 153);\">Sink immediately rejected the executive director&#8217;s plan.<\/span> <\/p><\/blockquote>\n<p>A &#8220;Wonderful Diversifier&#8221;????  Talk about throwing good money after bad.<\/p>\n<p>A brief list of bad investments:<\/p>\n<ul>\n<li>$168 million of debt from KKR Atlantic Funding Trust cut to D, or <b>default<\/b>, from B by Fitch Ratings on Oct. 8<\/li>\n<li>$356 million issued by KKR Pacific Funding Trust, cut to D from B by Fitch Ratings on Oct. 2<\/li>\n<li>$180 million of paper from Ottimo Funding, cut to D from C by S&amp;P on Nov. 9.  S&amp;P said an auction of Ottimo&#8217;s collateral &#8220;<b>did not generate cash proceeds<\/b>&#8221; to repay the asset-backed commercial paper.<\/li>\n<li>$175 million of short-term debt issued by Axon Financial Funding, an SIV. It was cut to D from C by S&amp;P when Axon failed to pay liabilities maturing Nov. 26, causing an &#8220;<b>automatic liquidation event<\/b>.&#8221;<\/li>\n<li>$650 million of certificates of deposit from Countrywide Bank FSB, a unit of <b>Countrywide Financial Corp<\/b>., that now amounts to more than 3 percent of the pool&#8217;s assets. The bank&#8217;s rating was cut to Baa1, three levels above junk, by Moody&#8217;s on Aug. 16.<\/li>\n<\/ul>\n<p>In a <b>MONEY MARKET FUND<\/b>?  I&#8217;d sooner have <b>Sweeny Todd<\/b> give me a shave than trust Florida&#8217;s financial judgement.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We are talking accounts used for day to day expenses and salaries, and when it was discovered that. &#8220;after learning that the money- market fund contained more than $700 million of defaulted debt&#8221;, there was a run on the fund, with over 35%, over $10 Billion of the $28 Billion in the fund, of its &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,970,973,1265],"tags":[],"class_list":["post-198233","post","type-post","status-publish","format-standard","hentry","category-bubble","category-corruption","category-economy","category-housing-crash"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/198233"}],"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=198233"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/198233\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=198233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=198233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=198233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}