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GLG News by Financial Guaranty Experts

John Jukoski, Jr., First VP & Director of Collateral Analysis
John Jukoski, Jr., First VP & Director of Collateral Analysis
Federal Home Loan Bank of Atlanta
Analysis of: Lehman Brothers faces Korean takeover bid (www.timesonline.co.uk)
KDB in this case is playing the role of the blind squirrel who finds a nut.  It is wise to invest opportunistically, in ventures that are cheap, WHEN YOU UNDERSTAND THAT YOU ARE NOT KNOWLEDGEBLE IN HOW TO RUN THESE BUSINESSES. 
John Jukoski, Jr., First VP & Director of Collateral Analysis
John Jukoski, Jr., First VP & Director of Collateral Analysis
Federal Home Loan Bank of Atlanta
September 11, 2008
Credit vs. Collateral
Analysis of: ECB `Overpricing' of Asset-Backed Debt May Shut Out Investors (www.bloomberg.com)
The question to answer here is whether or not the ECB is a collateral-based lender.
John Jukoski, Jr., First VP & Director of Collateral Analysis
John Jukoski, Jr., First VP & Director of Collateral Analysis
Federal Home Loan Bank of Atlanta
Analysis of: ECB to Change Auction Rules to Stop Banks `Gaming the System,' Mersch Says (www.bloomberg.com)
The fact the ECB might accept securities other central banks (or private lenders) might not is not preventing the market for these securities to correct.  Pledging securities to a collateralized lender will not affect the ability to sell these securities when the opportunity presents itself.
John Jukoski, Jr., First VP & Director of Collateral Analysis
John Jukoski, Jr., First VP & Director of Collateral Analysis
Federal Home Loan Bank of Atlanta
Analysis of: Bank Debt Risk Rises as Writedowns, Losses Exceed $500 Billion (www.bloomberg.com)
Let me be brief.  This is a synthetic market that allows participants to express their sentiments (wager) without participating in the cash market.  Beware reading too much into the levels at which items trade in any synthetic market.
John Jukoski, Jr., First VP & Director of Collateral Analysis
John Jukoski, Jr., First VP & Director of Collateral Analysis
Federal Home Loan Bank of Atlanta
September 3, 2008
Quality, not Quantity
Analysis of: Lenders reject multiple credit applications (www.guardian.co.uk)
Borrowers are finding it more difficult to obtain credit because lenders have a renewed awareness of the basics of extending credit, not because borrowers are requesting credit more often.
August 18, 2008
SWF are no fools
Analysis of: Sovereign Wealth Fund Assets Could Triple by 2013 (www.bloomberg.com)
Sovereign Wealth Funds (SWF) have a lot of money. So they can buy advice. What they do with it is another matter. Investing in Blackstone was investing in a reputable firm at a bad time. So short term the investment looks bad. Long term is the the time horizon of SWF and in the longer term it may...
Analysis of: Merrill, XL to bail out struggling bond insurer (www.reuters.com)
Merrill Lynch and XL, Citigroup and Ambac "Commutations" illustrate problem of blindly applying P&C Insurance concept to CREDIT risk and the CAPITAL MARKETS.   Grappling with one issue at a time, in  separate policies, silos and islands DOES NOT solve the problem, when they are ALL...
Maureen Bolton, Principal
Global Capital Access
Analysis of: Treasury and Banks Kick Start Home Financing Tool (www.reuters.com)
This article is important because it announces and describes: a) the US Treasury's support of covered bonds, an on-balance sheet method of funding mortgage originations, as an alternative to off-balance sheet mortgage securitizations or mbs b) Four major US banks announcements of their intentions to...
James Butler, C.F.A, Ph.D., President
Rigley Financial Corporation
Analysis of: It Ain't Over Til It's Over: Financials, Credit Cards and Housing (seekingalpha.com)
Citigroup has continued to show losses in global operations, some relating to subprime issues. However, while many of the financial institutions are showing losses, Citi's losses are different, which is a good thing for the investor.
Analysis of: India bigger source of FDI for European firms than China (www.hindu.com)
Indian industry is coming of age but Indian FDI in Europe will not keep up the indicated pas 

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