tag:blogger.com,1999:blog-30643134.post4387136332009444219..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: First Data LBOAccrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-30643134.post-38098740404494315572007-04-05T10:17:00.000-05:002007-04-05T10:17:00.000-05:00I'd say the big European governments are solid. If...I'd say the big European governments are solid. If you are asking me about the currency effect, I'd recommend you read www.dismally.com for that kind of analysis.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-42849581162332113102007-04-03T06:40:00.000-05:002007-04-03T06:40:00.000-05:00Thank you for the essentially instantaneous respon...Thank you for the essentially instantaneous response to the comments!<BR/><BR/>There are two things in blogs that make them far more attractive than the "main stream media".<BR/><BR/>One, some blogs, such as Firedoglake, have at least one brilliant writer, in the case of FDL, Jane Hamsher, who is genuinely gifted.<BR/><BR/>FDL had one other thing when it started out, which was excellent expertise on Federal prosecutions, making FDL the place to go for the Fitzgerald prosecution. It was this last that really propelled FDL into the stratosphere.<BR/><BR/>Bonds, as you have pointed out, are not nearly as dramatic as federal prosecutions of the Vice President's right hand man, so it is difficult to get in the kind of deadly <I>ad hominum</I> darts that Jane Hamsher brilliantly throws, but as expertise, Accrued Interest is at the very top...at a time when bonds are going to determine the future of the United States.<BR/><BR/>Are they?<BR/><BR/>To find out, place a bug in the Oval Office when President Bush talks to his old associate who "regulates" Freddie and Fanny.<BR/><BR/>And my future.<BR/><BR/>Obviously, I hold some bonds. They are sovereign bonds of European nations. Do you have any comments about them? Theoretically, they are safe.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-38614658903958711222007-04-03T06:27:00.000-05:002007-04-03T06:27:00.000-05:00Oh sorry, and a CDS is a "credit default swap" whi...Oh sorry, and a CDS is a "credit default swap" which is a derivatives contract on a particular credit. Basically the buyer of a CDS pays a set dollar amount to the seller. In exchange, the seller agrees to pay par for a reference bond in the event that bond defaults. In theory, this means that the buyer of the CDS is protected from default. Hence it is often said that the buyer of a CDS is "long protection."<BR/><BR/>I'll probably write a "How do CDS work" post soon, since you aren't the only one to ask this question.<BR/><BR/>Anyway, thanks for the comment. I appreciate the kind words.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-8520924619260705842007-04-03T06:24:00.000-05:002007-04-03T06:24:00.000-05:00Anon:I keep intending to write a definitons page a...Anon:<BR/><BR/>I keep intending to write a definitons page and then just link the jargon words to the definitions.<BR/><BR/>Anyway, a CBO is a "collateralized bond obligation." Just like a CDO except that it only holds cash bonds. For more on CDOs, there is a link on the right hand side of the page.<BR/><BR/>Second, I didn't link it into FDC because the details about what KKR will do are still sketchy. As more comes out, I'll try to post about it regularly.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-82271475265608193142007-04-03T06:17:00.000-05:002007-04-03T06:17:00.000-05:00This is the most interesting post I have read in a...This is the most interesting post I have read in a blog. I'm serious. I didn't understand all of it, but it was absolutely fascinating. Your knowledge is superb.<BR/><BR/>Questions:<BR/><BR/>General question/comment. When you use abbreviations such as: CBO and CDS, unfortunately I am not sure what they stand for. Would it be possible to parenthesize their meaning the first time (in any post unfortunately) that you use them?<BR/><BR/>Second, it would have been better <I>for me</I> had you had a final paragraph tying the example to the KKR FDC deal.<BR/><BR/>But, once again, congratulations!Anonymousnoreply@blogger.com