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Thread: GIC's paper loss on UBS

  1. #1
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    Default GIC's paper loss on UBS

    another loss
    I wonder what are the rate of bonus or increment of the people who making these decision?

    http://www.straitstimes.com/Breaking...ry_489752.html
    Feb 12, 2010

    GIC's paper loss on UBS

    It will convert $14.5b of notes to shares at price that would show loss

    By Gabriel Chen


    THE Government of Singapore Investment Corp (GIC) will convert its 11 billion Swiss francs (S$14.5 billion) worth of UBS notes at a price that may show a 70 per cent paper loss in its investment in the Swiss bank.
    GIC will exchange the mandatory convertible notes that it bought two years ago for 230.7 million ordinary shares in UBS on March 5, according to a regulatory filing with the United States Securities and Exchange Commission.
    This would mean the conversion price would be at 47.7 Swiss francs a share.
    At Wednesday's closing price of 13.67 Swiss francs for UBS shares, these shares would be worth just 3.15 billion Swiss francs, or around 7.85 billion Swiss francs less than its original investment of 11 billion Swiss francs.
    GIC declined to comment yesterday.
    Under the original agreement, the minimum conversion price was 51.48 Swiss francs and the maximum 60.23 Swiss francs, but GIC had said there was a reset due to certain anti-dilution clauses.

    Sony Alpha 700 hobbyist

  2. #2
    Member iMac08's Avatar
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    Default Re: GIC's paper loss on UBS

    why am i not surprise??? they like to buy high sell higher....and what happen to long term view? now cut loss means long term view is bad? or are they playing the market like the layman would?

  3. #3
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    Default Re: GIC's paper loss on UBS

    They can't keep it till the price go up? Or they have to sell after 2 years?

    HS

  4. #4

    Default Re: GIC's paper loss on UBS

    Quote Originally Posted by hongsien View Post
    They can't keep it till the price go up? Or they have to sell after 2 years?

    HS
    mandatory convertible notes
    http://www.answers.com/topic/mandatory-convertible

    A type of convertible bond that has a required conversion or redemption feature. Either on or before a contractual conversion date, the holder must convert the mandatory convertible into the underlying common stock.

    These securities provide investors with higher yields to compensate holders for the mandatory conversion structure.

  5. #5
    Member iMac08's Avatar
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    Default Re: GIC's paper loss on UBS

    more to come i believe....is so sad and insulting when we can afford to lose money like this. and only give 50k usd to Haiti for them to buy peanuts to eat

  6. #6
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    Default Re: GIC's paper loss on UBS

    Quote Originally Posted by iMac08 View Post
    more to come i believe....is so sad and insulting when we can afford to lose money like this. and only give 50k usd to Haiti for them to buy peanuts to eat
    Not surprising, with it's non-transparent system, we still don't know how many loss or bad investments are hidden

    Quote Originally Posted by Todays newspaper

    just a month after GIC booked losses of as much as US$675 million ($952.4 million) from its exposure to Stuyvesant Town, one of New York’s biggest apartment complexes.
    Sony Alpha 700 hobbyist

  7. #7

    Default Re: GIC's paper loss on UBS

    Tum podem extulit horridulum...日出東方﹐唯我不敗。

  8. #8
    Member iMac08's Avatar
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    Default Re: GIC's paper loss on UBS

    u know what..i really think 10% GST is coming...better buy all the cameras/lens/Rolexes etc we want now....hahaha

  9. #9

    Default Re: GIC's paper loss on UBS

    Quote Originally Posted by iMac08 View Post
    more to come i believe....is so sad and insulting when we can afford to lose money like this. and only give 50k usd to Haiti for them to buy peanuts to eat
    last i remember, peanuts cost $600,000.

  10. #10
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    Default Re: GIC's paper loss on UBS

    Quote Originally Posted by night86mare View Post
    Wow! High risk betting!..........I wonder who their investments advisers were

  11. #11

    Default Re: GIC's paper loss on UBS

    anything new?
    always the Light, .... always.

  12. #12

    Default Re: GIC's paper loss on UBS

    What's the official retirement age now?
    Tum podem extulit horridulum...日出東方﹐唯我不敗。

  13. #13
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    Default Re: GIC's paper loss on UBS

    Ok, so i'm not getting why everyone is upset, it's a conversion leading to a paper loss. the loss isnt realized yet as they haven't cashed in the common shares. or did they sell off the shares already?

  14. #14

    Default Re: GIC's paper loss on UBS

    GIC is managing funds in excess of US$100 billions.

    http://www.gic.com.sg/aboutus.htm

    Losing S$7.85 billions is nothing to them.

    On the other hand, GIC made money from sale of Citigroup shares.

    http://money.cnn.com/2009/09/22/news..._international

  15. #15

    Default Re: GIC's paper loss on UBS

    Quote Originally Posted by USM View Post
    GIC is managing funds in excess of US$100 billions.

    http://www.gic.com.sg/aboutus.htm

    Losing S$7.85 billions is nothing to them.

    On the other hand, GIC made money from sale of Citigroup shares.

    http://money.cnn.com/2009/09/22/news..._international

    So by earning USD$1.6B and lost S$7.85 B, its a good deal?
    One day they said its for long term investment and then they sold it off within 1 year.... I am confused....

    Remember, increasing GST to 7% is to create a safety net for the poor...

  16. #16
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    Default Re: GIC's paper loss on UBS

    Quote Originally Posted by scanner View Post
    So by earning USD$1.6B and lost S$7.85 B, its a good deal?
    One day they said its for long term investment and then they sold it off within 1 year.... I am confused....

    Remember, increasing GST to 7% is to create a safety net for the poor...
    Yo scanner... long time no see...

    I wonder when will GIC stop having paper loss and have real loss instead?

  17. #17

    Default Re: GIC's paper loss on UBS

    Quote Originally Posted by scanner View Post
    So by earning USD$1.6B and lost S$7.85 B, its a good deal?
    One day they said its for long term investment and then they sold it off within 1 year.... I am confused....

    Remember, increasing GST to 7% is to create a safety net for the poor...
    I wonder how many actually still remember what was mentioned when GIC made the decision to invest in UBS. Ain't the 1 year investment far off from their "long term investment" duration as per mentioned?

    Ouch, many good years ahead with such decisions.
    P e r s p e c t i v e

  18. #18

    Default Re: GIC's paper loss on UBS

    What's the use of criticising if can only make useless comments on hindsight?

  19. #19

    Default Re: GIC's paper loss on UBS

    “Criticism may not be agreeable, but it is necessary. It fulfils the same function as pain in the human body. It calls attention to an unhealthy state of things.” - Winston Churchill

    Tum podem extulit horridulum...日出東方﹐唯我不敗。

  20. #20
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    Default Re: GIC's paper loss on UBS

    Quote Originally Posted by eyes View Post
    “Criticism may not be agreeable, but it is necessary. It fulfils the same function as pain in the human body. It calls attention to an unhealthy state of things.” - Winston Churchill

    Asians in general don't like to be criticized.........

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