Comments on: CIT kicks the ball down the road http://blogs.reuters.com/felix-salmon/2009/07/20/cit-kicks-the-ball-down-the-road/ A slice of lime in the soda Sun, 19 May 2013 20:32:21 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Mark http://blogs.reuters.com/felix-salmon/2009/07/20/cit-kicks-the-ball-down-the-road/comment-page-1/#comment-4459 Mark Mon, 20 Jul 2009 23:12:59 +0000 http://blogs.reuters.com/felix-salmon/2009/07/20/cit-kicks-the-ball-down-the-road/#comment-4459 "For one thing, it leaves the lender with no unpledged assets at all, which is not a position any financial institution likes to be in." Is that really the way the deal is structured? I've heard differently. The Reuters article just says the new financing is backed by "unsecuritized" assets that probably exceeded $10bn. Unsecuritized assets are much different than unsecured assets, and saying that the financing is backed by unsecuritized assets isn't very helpful, because CIT obviously can't pledge assets they already securitized. “For one thing, it leaves the lender with no unpledged assets at all, which is not a position any financial institution likes to be in.”

Is that really the way the deal is structured? I’ve heard differently. The Reuters article just says the new financing is backed by “unsecuritized” assets that probably exceeded $10bn. Unsecuritized assets are much different than unsecured assets, and saying that the financing is backed by unsecuritized assets isn’t very helpful, because CIT obviously can’t pledge assets they already securitized.

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