Trevor Phillips

CIT: A Win-Win Trade Idea

The pref shares are up about the same so it wouldn't have caused much trouble. The only longer term risk to the strategy is that CIT not only survives, but without any dilution and then it goes up to 50 bucks/share. Then you'd lose on the trade overall.


On Jul 17 01:50 PM Paul Zimbardo wrote:

> Not a good day to have picked for shorting CIT. Currently up 110%
> right now.

Hartford: A Cheap Play on Distressed Debt

You can find details about their portfolio of assets by going to their website and sifting through the quarterly presentations, etc. From memory, I believe they have between 1-3 billion of pref shares/tier 1 exposure. These securities have nearly doubled on average since their last quarterly. The largest component of the potfolio is corporate bonds (diversified), which have also improved in price. The elephant in the room is their 6 Billion or so of CMBS (10 billion at par value). They also have a couple billion of RMBS. Hope that helps you out.