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Abu Dhabi Invests $7.5 Billion in Citigroup
- Thread starter Biog
- Start date
Quote from PohPoh:
From the wire:
0339 GMT [Dow Jones] Abu Dhabi Investment Authority's US$7.5 billion bail-out of Citigroup shows desperation, says senior institutional trader at major U.S. brokerage. "They've avoided a discounted equity issue by selling convertible equity units at an 11% interest rate. That's massively high. It shows they were
super desperate for funds." Notes 2-year U.S. bond yield of 2.88%, 10-year yield of 3.84%. "Citigroup have had to go out and offer 11% to get their hands on US$7.5 billion. It's good news, but it's bad news as well because it shows how deep these problems are. That's quite an extraordinary rate."
(END) Dow Jones Newswires
What? Aren't banks <i>supposed</i> to borrow funds at 11% interest, in order to lend it back out at 6% to 9%? Sounds like a great business model to me!
the more i think about it, the more i realize that this is going to backfire on them.
can you say SOLD!
can you say SOLD!
Quote from polpolik:
the great US of A getting rescued by Arabs and the Chinese.
Quote from Tracy McGreedy:
Americans are broke. Please world, come save this sorry ass.
Any of you guys out there trading in the 80's? Same shit was being said about the Japanese and look where that got them! Buy US assets high, then sell them back later much cheaper.
Now they we can move onto fre, fnm, cfc, wmu, etrade, mbi, abk, pmi, tgic,
Am I missing any others?
Am I missing any others?