From your Maiden Lane link....
On December 12, 2008, ML II LLC purchased RMBS with an estimated fair value of approximately $20.8 billion, determined as of October 31, 2008, (Asset Portfolio). ML II LLC financed this purchase by borrowing $19.5 billion (Senior Loan) from the New York Fed. The Senior Loan proceeds, after adjustments (totaling $0.3 billion between October 31, 2008, and December 31, 2008) including principal and interest payments received by the AIG Subsidiaries on the RMBS, were used to purchase the $20.8 billion Asset Portfolio. In addition to receiving the cash purchase price on the closing date, AIG Subsidiaries received a contingent right to collect the deferred portion of the total purchase price of $1.0 billion (Fixed Deferred Purchase Price) plus a one-sixth participation in the residual portfolio cash flow, if any, each following ML II LLC’s repayment of the Senior Loan and accrued interest thereon to the New York Fed.
As of October 31, 2008, the Asset Portfolio had a par value of approximately $39.3 billion.
$20.8 billion paid for $39.3 billion par value. About 53% of par. Not even close to your claim.
I suppose there could be a more meaningless figure than “par value” for a giant tranche of defaulted RMBS.
I see that $39.3 B in the prose, I don’t see it in the financials.
And as of 12/31/09 it’s mysteriously worth, after a $3.755B repayment, $15.9 billion. $20.8 - $3.755 = $17.045. Hey, a Blackrock’s gotta eat, right?
So not too bad, only a little over a billion in losses, and 44% of the port is CA and FL mortgage debt, what could go wrong?