[lbo-talk] Citigroup acquires China's bad assets worth 36.4 billion yuan

[joanna]

I'm assuming it's a bet on how much they can collect.

So. Just top keep the math simple: It's a 10 billion loan; they buy it 
for 1 billion and hope to collect 2 billion.

Joanna

Ylle wrote:


> At 08:09 AM 11/30/05, you wrote:
>
>> People's Daily Online
>>
>> Business
>>
>> November 29, 2005
>>
>> Citigroup acquires China's bad assets worth 36.4 billion yuan
>
>
> May I tug someone's sleeve with an Financial Issues 101 question?     
> Why would a company want to acquire bad loans like this?  How do they 
> make money off it?
>
> Maria
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