User 176256

1 Comment

    • ON: Thu Apr 10th 14:31 PM
      Commented on:
      Citi's Deal: Unclogging of the System
      There is always a market for any asset - it's just a question of price. What the Citi news didn't clearly state is that Citi is also backing up the first 20% of losses on these loans. And, to put the icing on the cake, Citi is financing part of the deal - which puts them on the hook for any defaults that occur in the PE firms that are buying this debt.

      So, to sum up...Assets begin discounted by 30% and financing required to make it happen. As I said at the beginning - there is a market for any asset, it's just a matter of price.
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