tag:blogger.com,1999:blog-6798074091942701235.post4802776141833942490..comments2024-03-29T01:35:09.550-04:00Comments on Can Turtles Fly?: Monoline News: Dexia Injects $5 Billion Into FSA; Talk of Commuting Insurance ContractsSivaram Vhttp://www.blogger.com/profile/06361276466660862882noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6798074091942701235.post-86812346265078959312008-06-24T13:37:00.000-04:002008-06-24T13:37:00.000-04:00Re: MillerActually that was a rhetorical question....Re: Miller<BR/><BR/>Actually that was a rhetorical question....shorting is never easy. I wouldn't short his fund holdings at this stage. Miller is about to get a short-term reprieve on his dogs -- MBIA and Ambac excepted.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6798074091942701235.post-9436187101456792542008-06-24T11:00:00.000-04:002008-06-24T11:00:00.000-04:00If I'm not mistaken, FSA is one of the biggest ope...If I'm not mistaken, FSA is one of the biggest operating units for Dexia, so I think they will support it unless it becomes uneconomic. Even if they take some losses, it makes sense for the parent to support the unit (eg. if FSA loses 10% of its portfolio, that's a loss of around $1billion to $2 billion, which is likely much lower than the value of FSA as a going concern.)<BR/><BR/>As for FSA's portfolio, it's hard to say. Just because it contains subprime, for example, does not mean it is necessarily bad. Most of the pre-2005 subprime debt is performing acceptably so it all comes down to the details.<BR/><BR/><BR/>As for Bill Miller, let's revisit him in 2 or 3 years... you should lay off beating someone who is down... I think his returns will be poor until the oil market corrects. Right now, the short-term investors are going short financials and long energy (because that's what works)...Sivaram Vhttps://www.blogger.com/profile/06361276466660862882noreply@blogger.comtag:blogger.com,1999:blog-6798074091942701235.post-88114978934942175942008-06-23T18:53:00.000-04:002008-06-23T18:53:00.000-04:00FSA's investment portfolio...Oops!http://www.portf...FSA's investment portfolio...Oops!<BR/><BR/>http://www.portfolio.com/views/blogs/market-movers/2008/06/23/monoline-datapoint-of-the-day<BR/><BR/>My guess is the $5B credit line will be used rather quickly -- if it is not pulled.<BR/><BR/>I question FSA's parent's willingness to throw money down the garbage shute when things continue to deteriorate.<BR/><BR/>Btw, the Bill Miller Fund Death Watch continues: Today's NAV dropped a further 1.45%. Is shorting his fund holdings really as easy as shooting fish in a barrel?Anonymousnoreply@blogger.com