Exact(7)
The remainder owed to the banks is in various loans, trading positions and other investments not secured by Enron assets.
Investors fear that other publishers will follow, and several of them have loans trading at distressed prices.
With the increase in such defaults, the number of leveraged loans trading at distressed levels now accounts for 16percentt of the market.
Cobbled together by Mr. Weill through a series of pell-mell acquisitions into the world's largest bank, Citigroup reached into every corner of the financial world: credit cards, auto loans, trading, investment banking, as well as mortgage securities and derivatives.
With rates plummeting, 87% of companies refinancing in the past year have done so twice, says Mr Donnelly.A consequence of the fall in rates has been in the secondary market, for corporate loans sold to institutions, where the number of loans trading at a discount has contracted sharply.
Citigroup and Standard Chartered, which along with HSBC are the biggest foreign banks in India, have an overall exposure to the country (including loans, trading positions and derivatives) that is 1.9 times the size of their regulated Indian operations.The hybrid system is complicit in a borrowing binge by the government: the budget deficit is running at 7-8% of GDP.
Similar(50)
"For the majority of the 1990's, most of these loans traded at par.
Investigators said the complex deal involved several special-purpose entities, interconnected loans, trades, hedges and more.
Many of these problem loans trade on eBay-like auction Web sites, which have grown rapidly over the last year.
Most of these loans trade for a fraction of their original value, a tantalizing target for investors.
India's figures are understated, they say, because they exclude foreigners' reinvested profits, the proceeds of foreign stockmarket listings, intra-company loans, trade credits, financial leases and so on.
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