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LoginTemasek is losing $6billions as at todate from UBS deal
21 posts
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Below is an extract from DJNewswire about SWF losses…
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SWF losses
Sovereign funds are licking their wounds. When the credit-crisis began unfolding last year, they rushed to the aid of Western banks, buying some $50 billion of shares and mandatory convertible bonds. Now, these look like terrible investments. The weighted average of the shares is down by 40%, according to a breakingviews calculation.
The worst performer would have been China’’s Citic, which agreed to put $1 billion into Bear Stearns in October as part of a two-way deal. Luckily for Citic, the deal was never completed. Still, the near-Bear experience will only reinforce the doubts about Western finance spawned by China Investment Corp.’’s $3 billion investment in Blackstone ahead of the private-equity firm’’s initial public offering, which has lost a third of its value.
Yet experience doesn’‘t always bring wisdom. The Government of Singapore Investment Corp., one of the oldest and often considered wisest of the sovereign funds, is sitting on the biggest absolute loss: $6 billion on its $11 billion punt on Swiss bank UBS.
The high-profile losses are certainly embarrassing. Yet there is a mitigating financial factor. With the exception of Temasek’’s $4 billion Merrill Lynch bet, all the investments took the form of high-yielding mandatory convertibles. These guarantee sovereign funds high dividends for a number of years, even if the shares tank and common shareholders get no payouts—an increasingly likely prospect at some banks.
Typically, the conversion comes after two years and the majority of convertibles negotiated by sovereign funds with the banks yield about 10% annually. That partially protects these investors by effectively cutting losses in half. Indeed, if the shares fully recover within two years, there may be no loss at all.
Either way, loss or break-even is hardly a great outcome. Citic escaped with just a bruised reputation. As the crisis continues to unfold other sovereign funds might not be so lucky. The debacle should be enough to persuade sovereign funds to steer clear in any future rounds of capital-raising.
—Antony Currie; Martin Hutchinson; Una Galani
Is this the way SG handles the public’s money…Jim Roger said before they(SG Govt.) shd hv waited later as the subprime haven’t run its course yet..why so kangcheong..somebody bent their arm?.Recently Temasek also sold Tuas Power(formerly-PUB) to a china co for $4 billion..is this a way to recover the losses or cover up something..what’s yr views
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This latest punting of our citizens' hard-earned monies which were exacted from the blood and sweat of all citizens causing some even to jump the MRT tracks and others to pick empty bins was the result of arrogance top-down uncaring running of the country.
The whole economy has been prevented from growing because of constant money sucking and nothing else. There is no extraordinary remaking or upgrading except for throwing monies at the foreign companies and foreigners.
Let us hope from this latest experience MM Lee will finally come to know that his talent and leadership is no talent at all and will fall on its own face if he still cannot see his own folly.
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Originally posted by robertteh:
This latest punting of our citizens' hard-earned monies which were exacted from the blood and sweat of all citizens causing some even to jump the MRT tracks and others to pick empty bins was the result of arrogance top-down uncaring running of the country.
The whole economy has been prevented from growing because of constant money sucking and nothing else. There is no extraordinary remaking or upgrading except for throwing monies at the foreign companies and foreigners.
Let us hope from this latest experience MM Lee will finally come to know that his talent and leadership is no talent at all and will fall on its own face if he still cannot see his own folly.
yes, let's pretend the money belongs to you.
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....and see how much they lose just one day in Merrill...
Merrill Lynch & Co Inc
(MER:NYSE)
LAST $41.45 USDCHANGE TODAY -5.18 -11.11%VOLUME 66.1MDown -11.11% in one day!!!!... they trade like monkeys picking stocks...
...and behave like gorrillas, arresting Dr Chee for protesting their dishonorable despotic behavior...
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Originally posted by AndrewPKYap:
....and see how much they lose just one day in Merrill...
Merrill Lynch & Co Inc
(MER:NYSE)
LAST $41.45 USDCHANGE TODAY -5.18 -11.11%VOLUME 66.1MDown -11.11% in one day!!!!... they trade like monkeys picking stocks...
...and behave like gorrillas, arresting Dr Chee for protesting their dishonorable despotic behavior...
well to them afterall. its all just 'peanuts'...nothing more, nothing less...
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Originally posted by 787180:
all related mah…Wong’sKS wife is niece of LKY so he doesn’t hve to step dn over nasi lemak case
is it?i confident they very transparent, honest, unbiased, based on justice and equality and very fair fair one such that even if its someone not in their tree, the treatment would surely be exactly the same?
u all belif right?
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Does anyone seriously believe a deluded bunch of incompetent despots (and their cronies) proclaiming to be worthy of a seat on the boards of Goldman Sachs and Morgan Stanley are actually capable of distinguishing monkeys from frogs?
For all the hoo-ha prior to their involvement with their Citigroup, Merrill Lynch, Barclays and UBS ventures, I wonder where all the foresight went when this circus of clowns couldn't see the potential in bailing out Bear Stearns (which, at USD2/share, certainly looked a far more rational deal than the exorbitant investments for their various "ventures") for the world-class wages these gnomes extort annually.
Mind, the tyrant running this regime actually bags wages more than three times that of Lloyd Blankfein's despite churning out such dismal results - I'm sure such "talents" are worthy of a place on the Goldman Sachs board...
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