Retail Equity Default Notes

Hmm... an 85% barrier on 100 equities for 7 years?! :eek:


http://www.dailyii.com/article.asp?articleID=1041332&LS=EMS-77288

 

looks like they are trying to dump off the equity tranche of a cds book

 

Market gets more like a casino every day, now don't it.

How to get fair value on something like this, must be complicated as hell.

 

Sometimes I think they should name these, We Sell You Toilet Paper For Good Money Notes.

 

Was giving you good advice , now wasn't I way back in 2006.

You're welcome

http://www.nytimes.com/2010/05/23/business/23gret.html?pagewanted=2&ref=business

 

I was very sceptical of those PP-notes when my UBS guy passed their marketing stuff to me as an FYI from their then-current offerings. Sooooo glad I passed on them for the reasons cited in the article and my own assessment of their setup versus the market action at the time back then.