Swiss Sub-Prime Debt to be Purchased by New York Company
Sub-Prime debt is one of the few things that the market in the United States has an excess of and of course nobody really wants to purchase it when push comes to shove. Still, there are even fewer companies that think they might be able to turn it to their benefit, but apparently Black Rock Incorporated is one of those companies as they just announced a plan to spend $15 billion in order to acquire a significant amount of Sub-Prime mortgage debt.
Specifically, they are working with Swiss Bank UBS AG on this deal, although the details of the overall deal will not be released until the end of trading tomorrow. The only thing that is known is that the overall debt is worth $20 billion, which gave the New York based Black Rock a sweet discount of 25% on the debt money which they are going to attempt to get investors for, maintaining a minority share and therefore participating in any gains that might occur.
Overall, investors of both Black Rock and UBS AG reacted positively to the news and both companies did relatively well over the remaining hours within the stock trading session.
