The New York Post reports that AIG is considering splitting off its "toxic" exposures - presumably its portfolio of CDOs of ABS - into a separate company. The article cites unnamed sources as saying that the insurer is working with JP Morgan on setting up a good insurer-bad insurer structure, and says that the amounts involved will dwarf similar structures in the past.
AIG has so far written down its near $300 billion portfolio of credit derivatives by $42 billion.
November 2008
News: CDS players smell rat after Rentokil private issue; Discount rules halt CLO trading; Morgan Stanley sells CDPC to Magnetar
People: Banks downsize credit prop operations; BNP Paribas reorganises trading; Fast moves
Deals: Investors sniff potential for further triple A CLO widening; Australian investors hope for windfall pay-out
Funds: Big name partners attract funds for structured opportunities strategy; Lehman collapse and loan falls dent returns
Analysis: Lifting the lid on CDO performance; Structured credit outperforms
Profiles: Viewpoint - Jonathan Trutter; Stanfield
Comment: Fishknife, Wolseley
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