Tuesday, July 29, 2008

Merrill Number Crunching

$4.4B of the CDO write-down:

  • Super Senior CDO positions worth $30.6bn sold to Lone Star for $6.7bn
  • … 22 cents on the dollar
  • … a further $4.4bn writedown from the mark Merrill reported barely two weeks ago, when they were valued at $11.1bn, or 36 cents on the dollar
  • Loan Star purchasing the CDOs using a $5bn loan from Merrill