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Global Diversified Investment Grade Income Trust II GIIZF

Global Diversified Investment Grade Income Trust II is a closed-end income trust. The company provides an economic interest in an equity tranche of a credit default swap agreement. It offers services such as portfolio management, financial planning, tax planning, banking solutions, insurance products and annuity, and complementary services among others.


GREY:GIIZF - Post by User

Comment by JReynoldson Jul 20, 2011 1:14am
340 Views
Post# 18850313

RE: Dividend declared

RE: Dividend declaredLosses resulting from all those credit events created the highest impact back in 2008 and 2009. Everything fell like a domino after Lehman Bros went into default. No warnings at that time... it would have been nice if there were warnings then, but even if there were, no one would take them seriously.

After that, investors became more careful, and some warnings started appearing from the issuers of those assets -  'toxic assets'.

Fast-forward to Deutche Bank (DB), Canada, a lot of the assets in the three tranches of securities mentioned would have experienced defaults, ie they're of no more values today. But precisely what quantity of those assets have 'died', it's not known yet. Hence, I believed DB still does not know the amount of losses they have suffered from the 'dead assets'. The report that is coming out latest by the coming November will detail everything.

I believed after that, one very important question that will arise is : if GII.UN can remain as a fund, or will it be closed, depending on, again,... I believed,.. if the three tranches are still feasibly able to continue providing interest payouts to the 'risk-absorbing party/parties', and in turn given to retail investors like us.

I'm sorry that I can't make it any simpler,... the ABSs (asset-backed securities), MBSs (mortgage-backed securities) and CDOs (Collateralised Debt Obligations) are quite complicated, given the many layers of parties involved in absorbing the risks,... and how these parties inter-relate to each other.
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