Abu Dhabi Invests $7.5 Billion in Citigroup
- Thread starter Biog
- Start date
stay under the radar ??
seems like the Fed. had no choice..
notice Chuckie Schumer blew the cover of the Fed Home Loan Bank for dumping money into CFC....
The C thing appears to be panic at the frat house...
China nowhere to be seen, but to go hat in hand to Abu Dhabi, I mean this is rank......
seems like the Fed. had no choice..
notice Chuckie Schumer blew the cover of the Fed Home Loan Bank for dumping money into CFC....
The C thing appears to be panic at the frat house...
China nowhere to be seen, but to go hat in hand to Abu Dhabi, I mean this is rank......
I wonder how the rating agencies would react to the fact that C is paying more than Junk bonds for this convertibles...Junk bonds are paying 9% versus 11% C is paying...
So basically the US banks are getting funny money from Fed at 4.5% but paying real money at 11% ... what are the implications here?
Look at the bright side, Fed's printing machine can at least take a little time off - time needed to print 7.5b.
So basically the US banks are getting funny money from Fed at 4.5% but paying real money at 11% ... what are the implications here?
Look at the bright side, Fed's printing machine can at least take a little time off - time needed to print 7.5b.
There must be a few banks out there in a really dire position if Citi are this desperate.
Under terms of Citi's agreement, the Abu Dhabi Investment Authority will have no special rights of ownership or control and no role in the management or governance of the bank, including no right to name board members.
The Abu Dhabi Investment Authority is buying mandatory convertible securities that can be converted into Citi stock in 2010 and 2011 at prices ranging from $31.83 to $37.24 per share.
The number of shares the investment group receives will adjust based on Citi's share price, with a higher share price giving the investor fewer shares.
The securities will also pay a fixed coupon of 11 percent per year, payable quarterly. That may seem steep, but after accounting for the fact that 60 percent of that coupon is tax-deductible, the coupon rate is similar to the dividend rate on Citi's shares, a person familiar with the matter said.
http://www.cnbc.com/id/21982904
. B.S. ! citi is up .1.10 , next lets see how much more funny money the fed will pump in today , tomorrow.......I'm just blown away by the 11% coupon.
One thing to consider is how much the ADIA would make if the USD appreciates as opposed to depreciates. This has the potential of being a multi-bagger for them in dollar strength. In dollar weakness, 11% buys you a pretty big cushion.
One more thing - interesting that the coupon approaches the M3 statistics being published over at shadowstats... not sure what it means, but just find it interesting.
One thing to consider is how much the ADIA would make if the USD appreciates as opposed to depreciates. This has the potential of being a multi-bagger for them in dollar strength. In dollar weakness, 11% buys you a pretty big cushion.
One more thing - interesting that the coupon approaches the M3 statistics being published over at shadowstats... not sure what it means, but just find it interesting.
There are no countries, only corporations. Let's drop this whole flag waving charade, we were owned long ago.