i understand this is later this week… i also understand that the expected recovery rate on the holding company is much higher than on the bank. i was thinking the opposite is often true. opco recovery > holdco recovery (although in this case the holdco is complicated by the fact it’s a bank. anyone know anything about this??
Typically opco needs to be made whole before anything can be kicked back up to holdco.
salvaNJ Wrote: ------------------------------------------------------- > Typically opco needs to be made whole before > anything can be kicked back up to holdco. salvaNJ, thanks… i was thinking opco usually has claim on the actual underlying assets. i think that’s related to what you said… but i guess holdco can own other valuable assets outside of prime holdco. do i have it backwards on the WAMU?? i said holdco expected recovery rate is much higher… anyway, the lehman cds settlement was probably the absolute low on the market for the entire cycle. i wonder if wamu settlement will cause same problems (or was lehman CDS settlement simply a coincidence with market low??) thanks again!!
the recovery rate for the three Icelandic banks will be close to 0…
so i see bloomberg headline that wamu is expected to be about 64% recovery… i don’t know anything, but that seems very good.
now i’m seeing 57… very confusing!
Details of the WaMu auction… http://www.creditfixings.com/information/affiliations/fixings/auctions/current/washmu-res.shtml