First Data: $9.4 Billion Sold

Submitted by
CalculatedRisk on Thu, 09/27/2007 - 6:21pm (40 comments)
in
M-F wrote on Thu, 9/27/2007 - 6:36 pm

Everything's coming up roses!! Nothing left to see. Move along. First!

jo6pac wrote on Thu, 9/27/2007 - 6:41 pm

Hi
Just stop by but .96 what a deal of course when it drops to .45 for the same deal ? It's like when you buy the newest gadget but a week later what happens it is cheaper.
Is this fun or what
jo6pac

FFDIC wrote on Thu, 9/27/2007 - 6:54 pm

Reuters
Banks' crisis skills to be laid bare by results

Banks' crisis skills to be laid bare by results
| Reuters

energyecon wrote on Thu, 9/27/2007 - 7:01 pm

Corporate Credit Takes Another Hit

Distress ratio surges past 3 percent.

Credit quality in the United States continues to erode, with the ratio of distressed corporate credit to non-distressed credit climbing still further in September after a big jump in August, according to Standard & Poor’s.

The percentage of distressed corporate bonds—those having option-adjusted spreads of more than 1,000 basis points relative to Treasuries—grew to 3.2 percent, up from 2.9 last month, S&P said. Before that, the level had been below 1 percent for five consecutive months.

[snip]

Meanwhile, distress in the leveraged-loan market also rose, breaking past 1 percent for the first time since November 2005, according to S&P. At the end of August (the latest data available), the share of performing loans trading at prices of less than 80 cents on the dollar increased to 1.17 percent from 0.63 percent a month earlier.

AZ_Cowboy wrote on Thu, 9/27/2007 - 7:12 pm

$24B x 8.73% = $2.1B in interest expense.

Based the latest 10Q cash flow, they can't keep paying that on an ongoing basis. Am I missing something here?

energyecon wrote on Thu, 9/27/2007 - 7:14 pm

AZ,

Maybe they have it in an OA! Wink

sdtfs wrote on Thu, 9/27/2007 - 7:15 pm

FFDIC-

Were you really that upset by that caption free for all?

FFDIC wrote on Thu, 9/27/2007 - 7:26 pm

Bllomberg.com
Some old news...

Economy at 'Scariest' Since Depression, Says Ethan Penner

Economy at `Scariest' Since Depression, Says Penner (Correct) - Bloomberg.com

FFDIC wrote on Thu, 9/27/2007 - 7:28 pm

Bloomberg's 1st update on First Data

KKR's Banks Sell $9.4 Billion of First Data Loans

KKR's Banks Sell $9.4 Billion of First Data Loans (Update1) - Bloomberg.com

Stagflationary Mark wrote on Thu, 9/27/2007 - 7:39 pm

Maybe Credit Suisse and Citigroup can sell more, and make up the loss with volume!

The "volume" jokes never get old! Further, even if they were to somehow get old you'd no doubt be able to make them up on volume! Smile

Here's yet another reason to be cautious:

Economic Expansion Durations

tj & the bear wrote on Thu, 9/27/2007 - 8:02 pm

Stag,

You get some great stuff. Don't know where you find the time!

Mark D wrote on Thu, 9/27/2007 - 8:10 pm

Shhhhhhh. don't tell anyone.

WASHINGTON (MarketWatch) -- The federal government's credit card remains intact.
The Senate voted 53-42 on Thursday to raise the federal debt limit by $850 billion, putting the ceiling at $9.815 trillion.

Good thing we can raise our own credit limit.

FFDIC wrote on Thu, 9/27/2007 - 8:15 pm

Fed's Munchkin Says Inflation Is Low Thanks to Policy

Fed's Mishkin Says Inflation Is Low Thanks to Policy - CNBC

Wizard of Oz Munchkins clip
YouTube
- Broadcast Yourself.

FFDIC wrote on Thu, 9/27/2007 - 8:37 pm

Credit Crisis made in Canada

"The crisis relates to the market for a complex type of short term funding known as asset backed commercial paper..."

Credit crisis 'made in Canada'

ShortCourage wrote on Thu, 9/27/2007 - 8:51 pm

That Munchkin article has to be from The Onion or ComedyCentral.com... I mean that's really funny stuff!

The Fed, our fearless fighters of inflation!

DB Coupper wrote on Thu, 9/27/2007 - 8:52 pm

FLIPPERS IN TROUBLE WEBSITE IS THE FASTEST GROWING BLOG ON THE INTERNET!!!

Sacramento Area Flippers In Trouble 

FFDIC wrote on Thu, 9/27/2007 - 9:04 pm

NY Times

Papers Study August Crisis, From First Wave to Last Ripple

"Smart investors love crises."

INSIDER; Papers Study August Crisis, From First Wave to Last Ripple - NY Times

Anonymous wrote on Thu, 9/27/2007 - 10:05 pm

"Good thing we can raise our own credit limit.
Mark D"

LOL, mate! Between that and the printing press, you yanks'll be fine.

DannyHSDad wrote on Thu, 9/27/2007 - 10:45 pm

Something to look forward to (Oct 9 @ 2PM ET):

FGIC To Hold Conference Call on RMBS and ABS CDOs Exposures

FGIC to present information and answer questions concerning FGIC’s exposures to mortgage-backed securities (RMBS), subprime RMBS and collateralized debt obligations (CDOs) of asset-backed securities (ABS).

Company profile FGIC Corporation is an insurance holding company whose wholly owned subsidiary, Financial Guaranty Insurance Company, provides credit enhancement on public finance and structured finance securities in the U.S. and internationally.

Will they talk about level 1 (to market), 2 (to model), or 3 (to fantasy) disclosure? Or will they mix and match the levels enough to seem legit but hide enough 3's to remain non-transparent? Interesting times ahead...

DannyHSDad wrote on Thu, 9/27/2007 - 10:51 pm

Asian Bond Sales Fall 75%, Most Since 2001, on Rout (Update1) - Bloomberg.com

Asian Bond Sales Fall 75%, Most Since 2001, on Rout

Governments and companies in Asia outside Japan sold $4.4 billion of bonds denominated in dollars, euros and yen in the past three months, compared with the quarterly record of $17.7 billion in the previous period, according to data compiled by Bloomberg.

The slump matched a drop in the third quarter of 2001, when the Sept. 11 terrorist attacks in the U.S. and concern that Argentina would halt payment on $132 billion of debt rattled credit markets.

It's one of those once in a lifetime event, I'm sure....

Random Reader wrote on Fri, 9/28/2007 - 1:43 am

Considering that the large banks have stated that they have marked their books for the worst (End August when things were definitely worse than now), I read the syndication of $9.4 billion of loans as a very positive sign. Is this a headfake ? Your guess is as good as mine.

Alec wrote on Fri, 9/28/2007 - 2:28 am

It's a good thing except if you're the bank who either lost money or broke even on the deal.

Or the outfit that has a crappy business plan, as most deals that do go trough will se 96 as a ceiling, not the floor.

TXU gets 96; Chrysler, 90.

NUREG wrote on Fri, 9/28/2007 - 2:58 am

OT

CR - I was thinking of MEW reading this.

Profit Growth in U.S. May Hit 5-Year Low on Housing (Update1) - Bloomberg.com

Elvis wrote on Fri, 9/28/2007 - 4:25 am

Online 2 visitors online right now. Wake up people.

King Peasant wrote on Fri, 9/28/2007 - 4:37 am

Another installment of "Dude, where's my recession?":
News Release: Personal Income and Outlays, October 2009 

PCE for August comes in at 0.6

Let's see what the construction and consumer sentiment numbers bring in a few hours...In the meantime my shorts ain't making me no money.

Alo wrote on Fri, 9/28/2007 - 4:42 am

Hmm, consumer spending up, but savings rate falls - i smell candles burning at both ends.

What might this say about inflation?

the_economist wrote on Fri, 9/28/2007 - 4:43 am

I would like to put my vote in for the saturday rock blog..

Elvis song:

I cant help falling in love with mew.

Nemo wrote on Fri, 9/28/2007 - 4:48 am

Apologies if this is old news, but...

http://quotes.ino.com/chart/?s=NYBOT_DX 

...I believe the US Dollar Index has fallen below its all-time low (78.19 in 1992).

Seemed worth a mention.

energyecon wrote on Fri, 9/28/2007 - 4:54 am

Would 'Free Falling' by Tom Petty (? not 100% sure) be apropos for Saturday Rock Blogging then?

energyecon wrote on Fri, 9/28/2007 - 5:02 am

Alo,

I had the same sense reading through the details on consumer spending - incomes increasing at a decreasing rate while outlays accelerated - did you catch nonfarm proprietors' income?

Neal wrote on Fri, 9/28/2007 - 5:04 am

I, for one, am glad that there is a positive savings rate and that inflation is under control.

Neal wrote on Fri, 9/28/2007 - 5:06 am

And, I am glad for giant boxes of salt that allow giant pinches of salt.

Neal wrote on Fri, 9/28/2007 - 5:12 am

Mr Greenspan on BBC, regarding the subprime securitization issues:

(quote)
"We did know what was going on and the reason we didn't stop them was that to a large extent these types of questionably egregious actions are taken by people who have their own money invested," he said.

"Hedge funds, who are presumably the largest culprit of all of this, are organisations in the US in which wealthy investors invest.

"I must admit that I do not have considerable concern about their net worth going from 40 million to five million, which in many case is what's happened."

Mr Greenspan also predicted that the era of low inflation was coming to an end.

"I'm not really able to pinpoint the time but I'm reasonably confident that the inflation tranquillity that we have experienced throughout the world actually for the last 20 years is not something we can hope to readily replicate as we move into the future."

(end quote)

So they knew what was going on but they did not connect that idea with the wider consequences.

Gamma wrote on Fri, 9/28/2007 - 5:24 am

Shhhhhhh. don't tell anyone.

WASHINGTON (MarketWatch) -- The federal government's credit card remains intact.
The Senate voted 53-42 on Thursday to raise the federal debt limit by $850 billion, putting the ceiling at $9.815 trillion.

Good thing we can raise our own credit limit.
Mark D

I think it's better to say "THEY made US extend them more credit". They technically work for us and are playing with OUR money and they are forcing us to foot the bill through dollar devaluation. It's disgusting.

The point I'm trying to make is we think about US and THEM. Maybe someday we'll bring back public hangings and start with these guys.

Kevin wrote on Fri, 9/28/2007 - 5:31 am

General Motors Corp. and the United Auto Workers agreed to a new class of jobs that would pay about half the current rate, breaking with the UAW's tradition of equal earnings for union members, people with knowledge of the plan said.

GM, UAW Agree to Cut New-Worker Pay Scale, People Say (Update3) - Bloomberg.com 

energyecon wrote on Fri, 9/28/2007 - 5:34 am

DX taking a run at 78 this morning, currently 78.05...

ruh roh

TC wrote on Fri, 9/28/2007 - 5:37 am

Mmmmm, what's that smell? Someone is cooking the books again. Heap my plate full of dat der low inflation. I want to fill my tummy before I pull out the checkbook to pay my kid's tuition bill and health insurance premium. Then its fill up the tank before I go food shopping and a quick stop at the mall. Starbucks? If there's time.

edgar wrote on Fri, 9/28/2007 - 5:46 am

make it up on volume...

Ha ha ha!! That is a joke students hear the first week of econ 101. It always gets me.

ecoshift wrote on Fri, 9/28/2007 - 6:58 am

Fed's Munchkin Says Inflation Is Low Thanks to Policy

Methinks the Munchkin "doth protest too much."

Stagflationary Mark wrote on Fri, 9/28/2007 - 10:18 am

tj & the bear,

My favorite class was Chart Spewing 101. Maybe some of them are even remotely useful! Wink

Login or register to post comments
Syndicate content