All Losses Begin as Unrealized Losses

March 2nd, 2009 2:55 pm | by John Jansen |

General Electric Credit Corp CDS has begun to trade on an upfront basis. Demanding payment up front is a particulat rite of passage in which the market expresses less than enthusiastic confidence in a credit.

Separately, Metropolitan Life announced that in its holdings 0f corporate bonds they are sitting unceremoniously on $14 billion in losses. I suspect that they are now hoping that advances in medical science will render current actuarial assumptions void and vacuous and the time value of money will work in their favor.

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  1. 9 Responses to “All Losses Begin as Unrealized Losses”

  2. By Bman on Mar 2, 2009 | Reply

    holy crap – is there any chance of a meteor strike at this point?

  3. By Alex on Mar 2, 2009 | Reply

    http://ftalphaville.ft.com/blog/2009/02/05/52108/life-insurers-terrible-bond-investors/

  4. By Matt on Mar 2, 2009 | Reply

    Words to live by.

  5. By Anset on Mar 2, 2009 | Reply

    “By Bman on Mar 2, 2009 | Reply

    holy crap – is there any chance of a meteor strike at this point?”

    YES ! a 44 metres wide asteroid passed not so far away from our planet today ! No joke.

  6. By Bman on Mar 2, 2009 | Reply

    no way – too bad we don’t have meteor futures. Where did you see that? – I may buy a lottery ticket tonight.

  7. By Anset on Mar 2, 2009 | Reply

    #

    By Bman on Mar 2, 2009 | Reply

    no way – too bad we don’t have meteor futures. Where did you see that? – I may buy a lottery ticket tonight.

    the passing-by asteroid story is here:
    http://www.foxnews.com/story/0,2933,503164,00.html

  8. By Name on Mar 2, 2009 | Reply

    I’d vote this post, inclusive of the great title as the best post of the year thusfar.

  9. By David johnston on Mar 2, 2009 | Reply

    GE is rated AAA which means it is just as secure as JNJ, XOM, or the United States Government. Hmm, maybe not quite.

  10. By Bman on Mar 2, 2009 | Reply

    Anset – thanks. Another example of how not everything can be explained/predicted by computer models – CDO’s ring a bell?

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