CITI Selling $12 Bil in LBO Debt – BAD NEWS
Posted on April 8th, 2008 in Daily Stock Market / Economic News - The Real Story
http://www.nytimes.com/2008/04/09/business/09citi.html?_r=2&oref=slogin&oref=slogin
2:30pm PST – News just broke on Fast Money and of course they immediately suggested it was ‘mortgage’ debt, which means ‘write-ups’ will happen because mortgage debt has been written down to nothing. TOTALLY IRRESPONSIBLE! Below is the real news. – Mr Mortgage
"The Citi
portfolio includes loans used to finance acquisitions by Apollo, Blackstone and
TP, as well as debt in their rivals’ deals. Apollo would buy about
half the portfolio, with Blackstone and TPG taking the rest. Citi declined
comment."
Facts are, CITI thought they would get 103-108 for it and it is likely on their books for 100. The only reason CITI would do this is because they need to raise tier capital now and it may be all they have they can sell. They are low on capital like everyone else. It was sure amusing to see the
sheeple jam the market higher on this as the news broke.
bubblevision spin this into something great tomorrow.
The only ones who made out was the LBO firm who are BUYING BACK THEIR OWN DEBT. What a deal.
LEH story out there. It is the only financial not screaming higher on this. Made
back 50% of its AH fall but stil down 2%. – Mr Mortgage
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