WTBU Sports: Men’s Basketball vs. Manhattan (12/1/07)
Array-ne Jogo 01 - JuventudeXSportJogo 02 - Atlético PRXSão PauloJogo 03 - NáuticoXFlamengoJogo 04 - GrêmioXCorinthiansJogo 05 - PalmeirasXAtlético MGJogo 06 - BotafogoXFigueirenseJogo 07 - GoiásXInternacionalJogo 08 - CruzeiroXAmérica RNJogo 09 - VascoXParanáJogo 10 - SantosXFluminense
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-ne 1º ) Perna - 2892º) Daniel - 2873º) Julio - 2814º) Eduardo - 2725º) Rafael - 2686º) Vinicius - 2687º) Guilherme - 2658º) Luciano - 2629º) Guto - 26110º) Dico - 26011º) Everson - 25912º) João - 25913º) Vitor - 25814º) Carlos Pai - 25815º) Luiz - 25516º) Caco - 224
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-ne The Naval Academy 38-3 victory at the 108th playing of the Army-Navy football game.The images are public domain.
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The chart below shows the payoff of the Citi FORWARD sale of equity to ADIA, dividend enhanced with an embedded options spread. Subprime CDOs also paid a high yield but most buyers didn’t realise or were not informed(!) about the credit default options they were SHORT SELLING, much too cheaply.The structure looks like Citi purchased the right to put stock to ADIA at 31.83 and sold a 17% out-of-the money call so ADIA would participate in any upside above 37.24. Since large bank equity puts are massively bid by those seeking protection and therefore implied volatility is high, ADIA picks up plenty of skew by writing the at-the-money put and buying a higher strike call so was obviously owed SUBSTANTIAL premium on the collar. So the shocking 11% coupon is explained as compensation for ADIA forgoing the 7% dividend yield available from Citi common, the high embedded option spread that Citi bought from ADIA, the typical equity premium on a mandatory CB and the tax treatment. Citi probably minimized its cost of equity capital in a difficult situation while ADIA got what MIGHT eventually be cheap equity in a bank that is almost certainly considered by the US authorities to be too big to fail. Abu Dhabi has written a put at a level they would presumably be content to own the stock and get paid a dividend plus the embedded option premium until they take formal ownership of the stock in 3 years or so. Panic is high, vol is high, vol skew is high, the current dividend yield seems high; We may yet see futher equity financings emerge for Citigroup and other banks with the credit crisis and other problems still around though Citi will be glad to have got an initial .5 billion done with a stable investor who won’t short sell the common as a hedge. Less negative effect on the stock price is a reason mandatory CBs are preferable for the issuer than ordinary CBs.With some financial engineering and restructuring of cashflows the 11% coupon could probably have been as extreme as 0% or 20% by changing various preferential rights, the capital structure, optionality, convert strikes or other aspects of the deal.
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But in terms of the bigger picture, Terriers head coach Dennis Wolff couldn’t have been more disappointed after the team dropped their sixth consecutive contest. The Terriers turned the ball over five times in the first five minutes of the game and did not score until sophomore John Holland’s layup with 12:31 left in the first half. The run closed the gap the Jaspers lead to two, but sophomore Antoine Pearson snuck by the Terriers defense and scored in transition to put the Jaspers up 30-26 going into halftime.“I thought Corey [Lowe] and Carlos [Strong] continued to try to make plays until the end of the game,” A scoring drought to begin the second half put the Terriers in desperate mode right out of the locker room. The Jaspers also were able to grab 11 offensive rebounds and out-rebounded the Terriers 41-36.“We don’t show enough fight defensively, we don’t rebound when we need to rebound,” “Contrary to what the stats look like, our lack of any play in or around the basket is a large part of where we are at right now.”The Terriers look to get back on track on Tuesday December 4 when they take on the Harvard Crimson at Case Gymnasium.
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Array-ne Jogo 01 - JuventudeXSportJogo 02 - Atlético PRXSão PauloJogo 03 - NáuticoXFlamengoJogo 04 - GrêmioXCorinthiansJogo 05 - PalmeirasXAtlético MGJogo 06 - BotafogoXFigueirenseJogo 07 - GoiásXInternacionalJogo 08 - CruzeiroXAmérica RNJogo 09 - VascoXParanáJogo 10 - SantosXFluminense
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-ne 1º ) Perna - 2892º) Daniel - 2873º) Julio - 2814º) Eduardo - 2725º) Rafael - 2686º) Vinicius - 2687º) Guilherme - 2658º) Luciano - 2629º) Guto - 26110º) Dico - 26011º) Everson - 25912º) João - 25913º) Vitor - 25814º) Carlos Pai - 25815º) Luiz - 25516º) Caco - 224
link
-ne The Naval Academy 38-3 victory at the 108th playing of the Army-Navy football game.The images are public domain.
link
The chart below shows the payoff of the Citi FORWARD sale of equity to ADIA, dividend enhanced with an embedded options spread. Subprime CDOs also paid a high yield but most buyers didn’t realise or were not informed(!) about the credit default options they were SHORT SELLING, much too cheaply.The structure looks like Citi purchased the right to put stock to ADIA at 31.83 and sold a 17% out-of-the money call so ADIA would participate in any upside above 37.24. Since large bank equity puts are massively bid by those seeking protection and therefore implied volatility is high, ADIA picks up plenty of skew by writing the at-the-money put and buying a higher strike call so was obviously owed SUBSTANTIAL premium on the collar. So the shocking 11% coupon is explained as compensation for ADIA forgoing the 7% dividend yield available from Citi common, the high embedded option spread that Citi bought from ADIA, the typical equity premium on a mandatory CB and the tax treatment. Citi probably minimized its cost of equity capital in a difficult situation while ADIA got what MIGHT eventually be cheap equity in a bank that is almost certainly considered by the US authorities to be too big to fail. Abu Dhabi has written a put at a level they would presumably be content to own the stock and get paid a dividend plus the embedded option premium until they take formal ownership of the stock in 3 years or so. Panic is high, vol is high, vol skew is high, the current dividend yield seems high; We may yet see futher equity financings emerge for Citigroup and other banks with the credit crisis and other problems still around though Citi will be glad to have got an initial .5 billion done with a stable investor who won’t short sell the common as a hedge. Less negative effect on the stock price is a reason mandatory CBs are preferable for the issuer than ordinary CBs.With some financial engineering and restructuring of cashflows the 11% coupon could probably have been as extreme as 0% or 20% by changing various preferential rights, the capital structure, optionality, convert strikes or other aspects of the deal.
link
But in terms of the bigger picture, Terriers head coach Dennis Wolff couldn’t have been more disappointed after the team dropped their sixth consecutive contest. The Terriers turned the ball over five times in the first five minutes of the game and did not score until sophomore John Holland’s layup with 12:31 left in the first half. The run closed the gap the Jaspers lead to two, but sophomore Antoine Pearson snuck by the Terriers defense and scored in transition to put the Jaspers up 30-26 going into halftime.“I thought Corey [Lowe] and Carlos [Strong] continued to try to make plays until the end of the game,” A scoring drought to begin the second half put the Terriers in desperate mode right out of the locker room. The Jaspers also were able to grab 11 offensive rebounds and out-rebounded the Terriers 41-36.“We don’t show enough fight defensively, we don’t rebound when we need to rebound,” “Contrary to what the stats look like, our lack of any play in or around the basket is a large part of where we are at right now.”The Terriers look to get back on track on Tuesday December 4 when they take on the Harvard Crimson at Case Gymnasium.
link