Tuesday, April 15, 2008

Cherry picking

The FT has this today:
Citigroup is allowing private equity groups bidding for up to $12bn of its leveraged loans to cherry-pick from a wide range of assets with different prices and credit ratings – a move that could complicate Citi’s efforts to clean up its balance sheet.
Sound familiar? It's great that they can finally get these loans to move, but the combination of the discount they are forced to accept and the fact that they will be left with the worst of the lot does not make one terribly enthusiastic about the stock.

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