Question-and-Answer Session
Operator
Great, thank you. (Operator instructions) And I’m showing a question from the line of Tom McCrohan with Janney Montgomery. Please go ahead.
Tom McCrohan – Janney Montgomery Scott
Hi, Dennis. Can you update us what the market value is today for the – or as of December 31, market value for the securities where you gave us the par value for the SIV holdings?
Dennis McGonigle
Well, Tom, it's roughly that you could calculate it based on the losses, net of the par value.
Tom McCrohan – Janney Montgomery Scott
Were there any big maturities this quarter? The par value went down $8 million, so that’s just $8 million of maturities, I guess, in the quarter?
Dennis McGonigle
It's really cash flows off of those structures that we received.
Tom McCrohan – Janney Montgomery Scott
Okay.
Dennis McGonigle
So, it's not like a full structured maturing, it would be underlying collateral thrown off cash flow.
Tom McCrohan – Janney Montgomery Scott
So, in September Q, you published, disclosed that the market value for the SIV holdings was $223 million, about 64% of par. And so you’re saying for this quarter, just subtract from last quarter’s par value the charge that was taken?
Dennis McGonigle
Yes, that will give you a rough estimate, yes.
Tom McCrohan – Janney Montgomery Scott
So that would imply that the value of those SIVs is close to slightly under 30%, does that sound right?
Dennis McGonigle
Yes.
Tom McCrohan – Janney Montgomery Scott
So, given that – recently when Goldman restructured that Cheney Holdings [ph] and called it Griffin [ph], renamed it, and they were offering a price of $0.51 to a dollar, you kind of view that as kind of an unacceptable price or maybe the fund management did and thought it was kind of a firesale price, but now it looks like, maybe that was actually a decent price. I’m just trying to –
Dennis McGonigle
Now, you have to remember that what was embedded in their price was a pretty significant component of cash which we got anyway.
Tom McCrohan – Janney Montgomery Scott
Okay.
Dennis McGonigle
Because the structure had built up cash over the balance of course of a year. So, even though we didn’t – so their price was really in the low 40’s net of the cash because we were getting the cash anyway.
Tom McCrohan – Janney Montgomery Scott
- To read the full transcript on Seeking Alpha, click here »
