2:30pm PST - News just broke on Fast Money and of course they immediately suggested it was 'mortgage' debt, which means 'write-ups' will happen because mortgage debt has been written down to nothing. TOTALLY IRRESPONSIBLE! Below is the real news. - Mr Mortgage
"The Citi portfolio includes loans used to finance acquisitions by Apollo, Blackstone and TP, as well as debt in their rivals' deals. Apollo would buy about half the portfolio, with Blackstone and TPG taking the rest. Citi declined comment."
Facts are, CITI thought they would get 103-108 for it and it is likely on their books for 100. The only reason CITI would do this is because they need to raise tier capital now and it may be all they have they can sell. They are low on capital like everyone else. It was sure amusing to see the sheeple jam the market higher on this as the news broke. Now futures are bright red in a 65 point reversal from the highs. How will bubblevision spin this into something great tomorrow.
The only ones who made out was the LBO firm who are BUYING BACK THEIR OWN DEBT. What a deal.