Author Topic: 2-Year Treasury  (Read 2036 times)

JEast

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2-Year Treasury
« on: May 16, 2018, 01:19:04 PM »
Here is hoping our friend BB and team have put another $3-4B to work in the 12-24 month space this month.


StubbleJumper

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Re: 2-Year Treasury
« Reply #1 on: May 16, 2018, 02:31:27 PM »
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

petec

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Re: 2-Year Treasury
« Reply #2 on: May 17, 2018, 12:29:15 AM »
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.

StubbleJumper

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Re: 2-Year Treasury
« Reply #3 on: May 17, 2018, 05:15:04 AM »
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

globalfinancepartners

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Re: 2-Year Treasury
« Reply #4 on: May 17, 2018, 06:01:24 AM »
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.

FFHWatcher

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Re: 2-Year Treasury
« Reply #5 on: May 17, 2018, 11:41:37 AM »
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

StubbleJumper

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Re: 2-Year Treasury
« Reply #6 on: May 17, 2018, 11:59:00 AM »
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.

FairFacts

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Re: 2-Year Treasury
« Reply #7 on: May 17, 2018, 01:49:38 PM »
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.