Saturday, September 5, 2009

Capmark's only value was its servicing platform

Following Berkshire's offer to buy Capmark's servicing, Moody's downgraded the remaining firm to C.
Moody's said the sale would impair Capmark's remaining business and eliminate a stream of income key to repaying debt. The ratings agency also said Capmark's assets have continued to deteriorate in quality and its banking arm may need an infusion of capital, all while its portfolio of unencumbered assets has shrunk.

The really impressive part of the whole story is the talent of the journalist writing the story. No only did they misspell words (I made corrections in the above quote from WSJ), but they obviously did 100% of their research via Google. They note at the end of the article:
The company primarily works with commercial real estate, according to its Web site.

uhhh, has it really come to this? This is more disappointing than Bloomberg's little basis point definitions every time they use the words "basis point", in a financial news article, aimed at people who better know what a basis point is!
A basis point is 0.01 percentage point and is equivalent to $1000 a year on a contract protecting $10 million of debt.
A basis point is 0.01 percentage point.


crabsofsteel said...

umm, "its" not "it's"

Concrete Jungle said...

My deepest apologies - grammatical errors corrected.

I found a capitalization error as well, and subsequently fired my editor and had an affair with his wife (which was only possible to execute because of the long weekend)! That will teach him!