tag:blogger.com,1999:blog-4815867514277794362.post9086570925289264119..comments2024-03-08T06:18:28.125+11:00Comments on Bronte Capital: Greensill - who is holding the bag - part twoJohn Hemptonhttp://www.blogger.com/profile/03766274392122783128noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4815867514277794362.post-61312230186116400432021-03-27T15:13:37.328+11:002021-03-27T15:13:37.328+11:00Tokio Marine stated on 23 March that:
In light of...Tokio Marine stated on 23 March that:<br /><br />In light of recent developments for Greensill’s business, we would like to clarify that trade credit insurance does not cover the liability of the policyholder nor the insured; rather it covers the accounts receivable of the insured. Hence if Greensill were the insured, trade credit insurance would cover what Greensill is owed, rather than what Greensill owes others. As such, in that case, the insolvency of Greensill does not crystallise any exposure for TMNF. The figures that have been reported in the media with respect to underwriting (such as “in excess of AUD 10 billion”) refers to the accumulated amount of the accounts receivable of Greensill, not exposure for TMNF.<br /><br />Are you yourself getting a little confused between what Greensill is owed as opposed to what it owes others? Just asking.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-39960123431519248492021-03-25T13:23:20.556+11:002021-03-25T13:23:20.556+11:00"... hence have other financing options ..&qu..."... hence have other financing options .."<br /><br />According to Matt Levine:<br /><br />"But the money did not all go to financing receivables. Much of it went to financing “prospective receivables” from “prospective buyers.” That is, there would be some steel company that did not buy coal from Bluestone, and Bluestone and Greensill would agree that probably it should and some day it would, and they would figure that, well, if it did buy coal from Bluestone, it would probably buy like $15 million worth, and so Greensill would lend Bluestone that $15 million. And then Greensill would eventually collect the $15 million from the steel producer, if and when it did buy coal from Bluestone. This sounds a little like I’m kidding but I’m absolutely not:"<br /><br />In this case is sounds like alternative financing might be a little tricky. I have no idea how typical it is. James B. Shearerhttps://www.blogger.com/profile/13452342984383895221noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-9287468943669525522021-03-14T07:03:11.868+11:002021-03-14T07:03:11.868+11:00Hi John, what do you say to critics of your bear c...Hi John, what do you say to critics of your bear case arguing that obligors to a good degree are runnning legitimate businesses and hence have other financing options available post Greensill/CS? In their view, losses may be much lower than what is currently discussed in the media. Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-12308872421400259352021-03-12T18:08:18.564+11:002021-03-12T18:08:18.564+11:00I think the nastiest scumbags in all this saga are...I think the nastiest scumbags in all this saga are Credit Suisse. Stuffing their PWM clients while knowing exactly what was going on. I queried their portfolio manager a few times on their exposures as this was the favourite hunting ground for short sellers. My impression was that they were well informed of the ultimate state of affairs.<br />I do hope they have to take large losses as the organization allowed these scoundrels to operate with impunity.Anonymousnoreply@blogger.com