tvb

Bailout Talks Lose Sight of the Cost Question

The 43% is only the capital appreciation. If these loans were paying 6% per year at par (don't know if that's the case, just estimating), the running annual yield on the investment (at 35 cents on the dollar) is almost 18% per year. Perhaps that helps bridge the gap to the number he comes up with in his calculation? Don't know, just thinking out load.