Re:Brexit Is a Lehman Moment for European Banks
by cm2187 on Sunday July 10, 2016 @12:08PM
(#12066038)
But there are buyers for complex financial instruments. There are many hedge funds around who can do both size and complex products. And other international banks have the teams and system to buy a portfolio.
But size is a problem. When you have 2 trillions $ of assets to sell, even if they are simple vanilla mortgages, it will be a buyer's market.
Yeah, we are on the same page, it was just a little nit as it seems weird to me to state that future revenues are the "pure" base for valuation when future is informed by current. Just semantics though.
> You will pretty much always find a buyer for financial assets. Unless they are so rotten that no one thinks they are worth what you have them in your books
At the right price you will find a buyer for anything. I was speaking to your point about liquidity, which is not about price of the asset, but about the quantity of interested buyers and the ease of structuring and executing a transaction with a buyer.