"Sophisticated counterparties were encouraged to provide short-term repo funding, collateralized by securities that turned out to be very illiquid, such as various asset-backed securities," he said.
Conseco said that as of March 31, the guaranteed bank loans exceeded the value of the stock collateralizing the loans by $358.5 million.
A 35% loss "still means that 65% of the assets are in place, so the fund is properly collateralized," he says.
* Money market assets, including long-term Treasury securities, Government agency securities, Fed funds, loans to brokerage firms collateralized by Treasury securities, Government guaranteed loans and bankers acceptances at United States banks would require only 30percentt of the standard capital requirement.
In the first case, donors pre-commit to vaccine purchases if R&D is successful; in the second, future aid commitments are collateralized so that funds can be raised immediately in the international bond markets.
S is in a position to demand good terms because there are lots of ExxonMobil shares sitting in pension funds and, so long as the stock loan is well collateralized, there is no harm to the lender in surrendering the share in exchange for a total-return ticket.
The company has an additional $400 million in hedge fund exposure, which is substantially collateralized, it said.
Stock loans are loans collateralized by stocks.
If the fund used substantially more than 15% of its assets as margin leaving the portfolio poorly collateralized, then this could mean the fund is courting the risk of substantial leverage and permanent capital loss.
deposited only into accounts that are insured by an agency or instrumentality of the United States, or are fully collateralized to ensure protection of the funds, even in the event of a bank failure.
