Wednesday, September 17, 2008

I wish i was back in school

The awesome CDS spread equation

Its a terrible time to be working in the investment banking biz, those employed are hanging by a thin thread. Uncertainty looms, to be honest I dont even know where things might head for me. Observation tells me everyones on the beach, nothing is moving and potential deals are all on hold. So, with three bulge brackets gone and news of Wachovia buying Morgan Stanley, that leaves ppl like us with less choices in the future. At the moment, I'm glad to be where I am but if things do change, boutiques or SWFs will likely be my options.

Market shed billions of dollars today after Wall Street took massive plunged amid the cosmic AIG bailout, seems like nobody is convinced! The US Gov had to cough out $85b to rescue them. As I understood, it'll be a 2 year loan and within that timeframe AIG will dispose off bits and pieces of itself. The root cause lies with their troubled capital markets division where they sold credit default swaps to banks and investors against defaults in CDOs. I wonder what my CDS-loving uni professor thinks of the current situation...

and will AIG continue to sponsor Manure??!!!


Blogger zewt said...

of cos... the biggest question is... who gained from all these? some very small group of individuals made a lot of money somewhere.

8:45 AM  
Blogger anomaly said...

short sellers definitely. I wish i was involve in all these short selling/naked selling biz. If only I could borrow AIG shares from my friends! I have friends working in AIA (Msia) who bought AIG shares last year at around USD70/share...its USD2.69/share now...

7:15 PM  

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