AIG’s investment strategy is to embrace distressed mortgages which are trading at discounted prices and offer attractive cash flows, in lieu of equities which are more impacted by shifts in the equity markets.  While AIG’s mortgage portfolio got them in a considerable amount of trouble during the “Great Recession” the primary problems that the company...Read More

It looks like the issue with delaying the sale of Maiden Lane III CDO’s was based on transparency as opposed to lack of market demand.  AIG sold off yesterday as the news of the delay broke, but the sooner the sale goes through at a good price, the sooner AIG can use the money to...Read More

After the market closed today the government announced that they will be selling some more of their stock.  They didn’t specify size as that is contingent upon pricing.  The good news for AIG shareholders is that the company is buying back $2 billion of their stock.  At just over 50% of tangible book value this...Read More

AIG came out with exceptional earnings after the close today.  The company earned $3.2 billion in the quarter and had operating income of $1.65 a share versus expectations of $1.13 per share.  The company increased book value to $57.68 reflecting 69% upside from the current price.  Recent sales of the Maiden Lane portfolios and AIA...Read More

This article showcases the high quality lending that banks are doing currently.  Improved underwriting and more disciplined pricing are the results of the consolidation that the industry has undergone.  While these are fairly normal characteristics for the recovery period in the credit cycle, markets aren’t giving the banks any credit for their solid financial strength....Read More

We’ve been documenting the resurgence in AIG and the absurd valuation that “Mr. Market” is placing on the stock.  Another key cog of that value is their stake in Maiden Lane III.  Once the Fed sells these securities to repay the loan the balance will belong to AIG.  This could be anywhere from $4-$7 billion...Read More

The Federal Reserve continues to unwind the various Maiden Lane portfolios at a really nice profit for taxpayers.  Once the Federal Reserve sells the remaining portion of Maiden Lane III AIG should be pretty much done owing any more money.  According to Bloomberg the central bank is owed almost $9 billion on its loan to...Read More

It’s good to see AIG getting back into Real Estate while collateral values are still low.  This is a company that has a huge amount of float that they need to invest so they must remain disciplined and diversified.  Before their CEO Robert Benmosche took over AIG was winding down everything under pressure from the...Read More

It appears that AIG is moving closer to selling off a part of if not all of its aircraft leasing company ILFC.  This business could be worth anything from $6-10 billion and is not a core asset for the company.  AIG would be wise to take advantage of today’s favorable market environment, to sell the...Read More

AIG CEO Robert Benmosche continues to show his leadership stripes by looking to get more aggressive into the mortgage market.  In this FT article Benmosche suggests that the company is looking to buy the mortgages that their subsidiary United Guaranty Corp is insuring.  United Guaranty has modified risk based pricing and is reviewing each loan...Read More