Quote: Too good to be true? The company takes out what amounts to a subprime mortgage, and pays 11% interest. That sure sounds like desparation. Too good to be true, lol.
You are trying to make a complex transaction seem too simplistic.
Maybe, but Citigroup is run by a bunch of morons. Just compare the costs of their recent debt and equity financing to see what I'm talking about.
I think when you call the citi mgmt team a bunch of morons, the onus of proof falls on your shoulders, not anyone else. The mgmt team, I daresay, has a pretty good pedigree. there may be slightly more than meets the eye to this transaction.
In any event, I would welcome a post by you with thoughtful reasons to backup your statements.
Morons, maybe not. Excessively greedy and imprudent, certainly. Inadequate, or no DD on a lot of garbage paper. And then trying to hide it by putting off the writedowns as long as possible.