Tuesday, February 12, 2008

Sharp drop in AIG shares

I read a Bloomberg report that AIG shares dropped by 30 percent since the change of CEO from Hank Greenberg.

The recent drop was due to the losses on credit default swaps issued by AIG. This protects the buyer from credit defaults, e.g. due to subprime mortgages.

AIG is the parent company of AIA in Singapore. It has a AA credit rating (previously AAA), but analysts expect the rating to be further downgraded.

More details:
http://www.bloomberg.com/apps/news?pid=20601087&sid=axfNBsHVBagY&refer=home
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2 comments:

  1. AnonymousFebruary 15, 2008 10:22 AM

    How will this affect the bonus or values of AIA plans in Singapore?

    ReplyDelete
  2. Tan Kin LianFebruary 15, 2008 5:38 PM

    I suggest that you ask AIA on how much their investments are affected, and if it has any impact on the bonus for their policyholders.

    ReplyDelete