Trifecta, SIV's -30%; Breaking The Buck & ERISA
A Trifecta... 1st, Wal Mart same store sales growth at a 27 year low. 2nd, Macy's trimming forward guidance. 3rd???
J.C. Penney, #3 U.S. department store, reported its first profit decline in three quarters...
and slashed an earnings forecast as Q3 net income shrank 9.1% on a 1.1% sales decrease.
Tech down... Applied Materials, provided Q1 revenue and EPS guidance that was noticeably below current consensus estimates.
30.3 Percent Discount... July 100%; Oct 19th 71%, today 69.7%.
Alex, what is the NAV or net asset value of holdings by SIV's or structured investment vehicles, according to Fitch's Ratings.
SIVs have been forced to sell about $75 billion of investments since July.
ERISA and Breaking the Buck...
SEI Investments and SunTrust Banks joined B of A and Legg Mason by shoring up the SIV's involved in their money market funds.
The parent companies have stepped in to make sure investors don't lose money by arranging financing so their funds don't fall below the $1 a share net asset value, known as ``breaking the buck.''
Yesterday, the GEAM Trust Enhanced Cash Trust, a short term bond fund with about $5 billion in assets,
broke the buck and returned money to investors at 96 cents on the dollar after losing about $200 million, mostly on MBS mortgage backed securities.
Outside investors were warned to redeem their shares before incurring further losses. The fund and its investors proxies may have to deal with potential ERISA violations.
Due to the fact that most of the fund's money comes from GE's corporate pension plan which remains fully invested. Hattip to Bloomberg.
J.C. Penney, #3 U.S. department store, reported its first profit decline in three quarters...
and slashed an earnings forecast as Q3 net income shrank 9.1% on a 1.1% sales decrease.
Tech down... Applied Materials, provided Q1 revenue and EPS guidance that was noticeably below current consensus estimates.
30.3 Percent Discount... July 100%; Oct 19th 71%, today 69.7%.
Alex, what is the NAV or net asset value of holdings by SIV's or structured investment vehicles, according to Fitch's Ratings.
SIVs have been forced to sell about $75 billion of investments since July.
ERISA and Breaking the Buck...
SEI Investments and SunTrust Banks joined B of A and Legg Mason by shoring up the SIV's involved in their money market funds.
The parent companies have stepped in to make sure investors don't lose money by arranging financing so their funds don't fall below the $1 a share net asset value, known as ``breaking the buck.''
Yesterday, the GEAM Trust Enhanced Cash Trust, a short term bond fund with about $5 billion in assets,
broke the buck and returned money to investors at 96 cents on the dollar after losing about $200 million, mostly on MBS mortgage backed securities.
Outside investors were warned to redeem their shares before incurring further losses. The fund and its investors proxies may have to deal with potential ERISA violations.
Due to the fact that most of the fund's money comes from GE's corporate pension plan which remains fully invested. Hattip to Bloomberg.
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