GLG News by Rating Agency Experts

This article summarises Temasek's recent equity investment in Merrill, including the price paid and future intentions.  Temasek appears to be more than satisfied with its investment and is inclined toward similar investments (financial institutions undervalued due to over-estimates of subprime/CDO...

Implications: 1.All growth estimates will have to be revised for the year 2008. 2.The fourth quarter forcasted estimates will have drastic implications - well into the year 2008. 3.Break-even analysis of write-downs may be obsolete and extensive. 4.Loss per share and profit per share will have a dramatic...

Impications: 1. Sub-prime collapse is a major indicator of less than adequate performance by "management". 2."Expected" further growth by some financial institutions is questionble and , possibly , week. 3.It is , entirely, possible that foreign institutions will have a reasonable managemet exposure...

Implications: 1.Undislosed - Deteriorating Underwriting Results. 2.Growing competition in the Industry is a very real scenerio. 3.The challenge of escaping the sub-prime mortgage crisis is , solely, dependent upon the Insurance  carriers Reserves. 4.The concept on continuing profits is undermined...

1 Rating agencies should perhaps step back a little from ratings based largely on what they put forward as immutable quantitative stress tests that were not supposed to change with the credit cycle and turn a bit more to judgment and subjectivity because credit is not just a numbers game. ...

Implications: 1.Additioanal Investment Options may be granted , which may lower the stocks trading price. 2.A Massive write-down of the financial value , as it relates to mortgage-related holdings. 3.Stock's trading price of Merrill Lynch has been lowered by almost 10% - shareholder value will reflect...

Implications: 1.Anonymity - UBS Private Banking relationship with foreign wealth funds. 2.The extent of Massive losses wil have to be determined at a future date. 3.Writedowns on securities related to the US mortgage market must be clarified- $14bn?. A Hugh amount of money. 4.A "Total Re-Capitalization"...

Implications: 1.Government and Financial Regulators must restore confidence in the Sub - Prime Sector. 2.The U.S. Federal Reserve and European Central Banking Authorities must infuse large sums of money into the Marketplace. 3. Cash infusion is most likely to made by Foreign Institutions. 4.The Salient...

Implications: 1.As time passes the Credit Market crisis may ease. 2.There will be a different impact on short-term lending vs long-term lending. 3.Money rates will take a higher postioning and a massive write- down of securities instruments. 4.The end result - measures for correction by the Central...

Implications 1.One of the largest largest subprime casualities of a major European Bank. 2.The FIRST full year operating loss , since the 1960's. 3.A Full Dilution of Earnings per Share in decades. 4.Credit Rating Agencies will flag this institution to mirror the loss. 5.Cash dividends will be replaced...