Comments on: Explaining the AIG exit http://blogs.reuters.com/felix-salmon/2010/10/05/explaining-the-aig-exit/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: FifthDecade http://blogs.reuters.com/felix-salmon/2010/10/05/explaining-the-aig-exit/comment-page-1/#comment-19096 Wed, 06 Oct 2010 02:28:01 +0000 http://blogs.reuters.com/felix-salmon/?p=5660#comment-19096 Excellent article, very easy to follow. Informative and balanced.

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By: leg http://blogs.reuters.com/felix-salmon/2010/10/05/explaining-the-aig-exit/comment-page-1/#comment-19088 Tue, 05 Oct 2010 21:34:58 +0000 http://blogs.reuters.com/felix-salmon/?p=5660#comment-19088 So, in the end, was AIGFP having a liquidity problem or were they losing billions of dollars? If the Treasury is actually going to end up making money, it sounds like AIGFP couldn’t have possibly lost as many billions of dollars as it sounded like they did.

Not that it would be OK if the only thing hurting AIGFP was a lack of liquidity: they still made insane trades.

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By: KidDynamite http://blogs.reuters.com/felix-salmon/2010/10/05/explaining-the-aig-exit/comment-page-1/#comment-19087 Tue, 05 Oct 2010 21:17:24 +0000 http://blogs.reuters.com/felix-salmon/?p=5660#comment-19087 Felix – great writeup. I am working on a similar piece as we speak. one thing that jumped out which I interpreted differently than you did:

with respect to the inv grade rating – it’s not that Treasury had to be able to pretend that it didn’t HAVE to sell the assets, it’s that they couldn’t sell the assets without an IG rating – an insurance company that’s not IG isn’t worth much of anything at all.

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By: klhoughton http://blogs.reuters.com/felix-salmon/2010/10/05/explaining-the-aig-exit/comment-page-1/#comment-19085 Tue, 05 Oct 2010 20:50:00 +0000 http://blogs.reuters.com/felix-salmon/?p=5660#comment-19085 Hey, there are several zero-coupon perpetualss in the market. (Yes, this is not the first time I have mentioned this.)

The key is that it is Preferred Stock. It’s not pari passu with other equity obligations. The priority in itself has to be worth something, which is why KD et al. think of it as not being equivalent to a zero-coupon perp.

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By: AnonymousChef http://blogs.reuters.com/felix-salmon/2010/10/05/explaining-the-aig-exit/comment-page-1/#comment-19083 Tue, 05 Oct 2010 20:20:04 +0000 http://blogs.reuters.com/felix-salmon/?p=5660#comment-19083 Very interesting. Thanks for jumping into this, Felix.

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By: alea http://blogs.reuters.com/felix-salmon/2010/10/05/explaining-the-aig-exit/comment-page-1/#comment-19081 Tue, 05 Oct 2010 19:56:06 +0000 http://blogs.reuters.com/felix-salmon/?p=5660#comment-19081 Good piece.

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