LEH vs the DOW comp charts.
Started by
ogm
, Jul 17 2007 10:27 AM
2 replies to this topic
#2
sglasson
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Posted 17 July 2007 - 10:48 AM
wonder how much of a drag sub-slime is on LEH and other biggies like GS, ML, MS ?
#3
ogm
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Posted 17 July 2007 - 10:50 AM
wonder how much of a drag sub-slime is on LEH and other biggies like GS, ML, MS ?
Huge.
last year they sold 500 bil worth of CDO's, CMO, and other junk. Since Bear Sterns debacle, that business practicaly stopped. Their other big source of income is LBO's and other merger/buyout advisory fees.
Now that the banks started getting stuck with bridge loans, and generaly LBO bedt became less attractive with global rise in interest rates, the demand for that debt is also falling.
That is hitting them too.
Edited by ogm, 17 July 2007 - 10:53 AM.
