GLG News by Valuation Specialists

Loan loss reserves at banks are at historic lows. At the same time, the credit cycle has turned viciously negative, particularly for mortgages. Banking regulators are likely to ratchet the pressure up on banks to raise their loss reserves. The most vulnerable are banks with outsized exposure to the...

1. The need for talented pension risk managers is growing. 2. Demand is starting to quickly outweigh supply and driving up wages as a result. 3. Pension investment returns and related strategy must consider the cost of attracting and retaining talented risk managers.

1. How can plan sponsors embrace best practices if proper economic incentives are not in place? 2. What are the ills of excessive regulation with respect to commercial risk-taking? 3. Is there a role for bold leadership on the part of plan sponsors?

1. Investors must be aware of who and how decisions are made by plan sponsors. 2. A bad or incomplete decision about employee benefits could cost big money and drive share price downward. Fiduciary risk has economic impact.

1. Liability-driven investing has another cost in the form of higher short-term rates. 2. LIBOR has been moving away from the Fed. Funds rate. 3. Central bankers may have a tougher time keeping market volatility in check. That adversely impacts pension plan financial health.

Countywide's announcement late last Friday and Angelo Mozilo's letter to employees provide a unique window into CFC's strategy for addressing the impact of the credit crisis on its business. The letter provides details on the steps that CFC is taking to shelter itself from the fallout. Unfortunately,...

1. Understanding a plan sponsor's investment risk exposure is necessary but not sufficient. 2. Plan participants, corporate investors and lenders all need to know whether pension investment risk could create financial problems. 3. There is limited information currently available. A move by FASB to require...

Retained interests from securitizations made up more than 75% of the shareholder's equity at NFI. Also, the company has elected to finance these securities. Demand, never very strong to begin with, has deteriorated severely in the last month. The company could be forced to recognize a sizeable...

1. Service providers who do not consider their implicit or explicit fiduciary status vis-a-vis public or corporate pension plans could find themselves in the litigation cross hairs. 2. Pension litigation is skyrocketing with fiduciary breach allegations leading the way.

Several banks will be closing their third quarter soon. The credit crisis intensified in the third quarter - what impact should we expect to see from the bankruptcies, plummeting market values, the virtual demise of the collateralized debt obligations market etc. - Some banks will write down goodwill...