Citibank … market’s misinterpretation?
Citibank is close to announce the sale of around 12bln$ of debt.
This is seen as positive and bullish … hmmmm
My take:
1. This is buy-out related debt, NOT mortgage related … so they sell “better” debt
2. They lock in a loss … and free as it is leveraged debt only a small amount of their balance sheet
3. It shows their urgent NEED for cash and the NON-functioning of the market
4. Deleveraging continues … NOT bullish
Be aware … more bad news to come …
So far we had Alcoa … bad … AMD … bad … UPS … bad … who is next … ???
Tags: Citibank, credit crunch
