Jump to content

2-Year Treasury


JEast
 Share

Recommended Posts

Here is hoping our friend BB and team have put another $3-4B to work in the 12-24 month space this month.

 

 

From where would they take $3-4B?  Last I looked, there wasn't a whole lot left in the 5+ year maturity range.  I guess they could liquidate that last little bit and move it to short-term, but my sense was that the job was pretty much done.  I was a bit surprised about how fast they were.

 

 

SJ

Link to comment
Share on other sites

Here is hoping our friend BB and team have put another $3-4B to work in the 12-24 month space this month.

 

 

From where would they take $3-4B?  Last I looked, there wasn't a whole lot left in the 5+ year maturity range.  I guess they could liquidate that last little bit and move it to short-term, but my sense was that the job was pretty much done.  I was a bit surprised about how fast they were.

 

 

SJ

 

Cash/equivalents? I'm assuming most of that is much shorter than 24 months.

Link to comment
Share on other sites

Here is hoping our friend BB and team have put another $3-4B to work in the 12-24 month space this month.

 

 

From where would they take $3-4B?  Last I looked, there wasn't a whole lot left in the 5+ year maturity range.  I guess they could liquidate that last little bit and move it to short-term, but my sense was that the job was pretty much done.  I was a bit surprised about how fast they were.

 

 

SJ

 

Cash/equivalents? I'm assuming most of that is much shorter than 24 months.

 

 

Are we not assuming that most of that cash is earmarked to buy-out the minority positions in some of the subs, and this will likely occur in less than a 24 month horizon?

 

 

SJ

Link to comment
Share on other sites

Holding company cash is earmarked for minority partner buyouts.  Insurance float cash is probably mostly already put to work in similar duration to what the original poster hoped for.  1-2 year treasuries.  I forget where they mentioned they had already put most of it to work in that part of the curve, but I read it on this board somewhere.  It was quick to put it all to work, but it's still really short, laddered stuff probably.  So I would assume they are steady buyers with maturing bills.

Link to comment
Share on other sites

Here is hoping our friend BB and team have put another $3-4B to work in the 12-24 month space this month.

 

 

From where would they take $3-4B?  Last I looked, there wasn't a whole lot left in the 5+ year maturity range.  I guess they could liquidate that last little bit and move it to short-term, but my sense was that the job was pretty much done.  I was a bit surprised about how fast they were.

 

 

SJ

 

Cash/equivalents? I'm assuming most of that is much shorter than 24 months.

 

 

Are we not assuming that most of that cash is earmarked to buy-out the minority positions in some of the subs, and this will likely occur in less than a 24 month horizon?

 

 

SJ

 

FFH had $17B in subsidiary cash at the end of Dec 2017.  Then FFH had $12B in subsidiary cash and cash equivalents at the end of the most recent Q.  So, lots of cash sitting there waiting for a higher yield

Link to comment
Share on other sites

Here is hoping our friend BB and team have put another $3-4B to work in the 12-24 month space this month.

 

 

From where would they take $3-4B?  Last I looked, there wasn't a whole lot left in the 5+ year maturity range.  I guess they could liquidate that last little bit and move it to short-term, but my sense was that the job was pretty much done.  I was a bit surprised about how fast they were.

 

 

SJ

 

Cash/equivalents? I'm assuming most of that is much shorter than 24 months.

 

 

Are we not assuming that most of that cash is earmarked to buy-out the minority positions in some of the subs, and this will likely occur in less than a 24 month horizon?

 

 

SJ

 

FFH had $17B in subsidiary cash at the end of Dec 2017.  Then FFH had $12B in subsidiary cash and cash equivalents at the end of the most recent Q.  So, lots of cash sitting there waiting for a higher yield

 

 

 

Referring to Note #5, yes, there were about $6b in US treasuries that were <1 year, and presumably those will be rolled over into some other US short-term treasuries....whether it's <1 year or 2 year treasuries is the question.  I don't see them doing anything with the actual cash, however.  There was $6b of actual cash, but the holdco cash is probably earmarked to buy the minority positions in the subs and for general liquidity and the subs' cash is for liquidity, so I don't see much prospect for that to be moved into 2-yr.

Link to comment
Share on other sites

On the recent conference call PW mentioned that Paul is already working on a deal with Omers to buy back the MI in Brit ($435 mil). The only other significant MI is Allied World which has 2 years to go before they can buy MI. So not a huge need for holding cash for the MI buybacks.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...