Re: Good time to buy BSC?
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I don't think anyybody has marked their subprime and alt-a paper down to true market, so if they're holding any, they probably haven't either.
Again, where did you get this book value from? If it's from their last 10Q, it's way out of date. You've heard of their hedge fund bankruptcies? BTW Bear is a lot more than a broker/dealer.
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Again, since Bear is a market maker and believe it or not, most of these things (or comparables) *are* trading, you're accusing their traders of fraud or suggesting that there is some sort of liquidity crisis we have yet to see evidence of. Note that most of their credit exposure is hedged. As for their BV, Bear has very recently said that they've made money since last time they reported. So their book value is up from then, not down.
Yes, Bear is a lot more than a broker-dealer - most of their other businesses (beyond clearing/prime brokerage and debt underwriting, which we're including above) have little book value risk. Hedge fund bankrupcies, beyond the actual capital they had at stake and the difference between the loan they made and the collateral they received in return (likely not too high - they may lose 10-15% at most) will not impact their book.
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