Friday, February 01, 2008

BMS - subprime?

The LA Times asks:

Question: What does Bristol-Myers Squibb Co. make besides drugs?


Answer: Bad investment decisions.

Bristol-Myers Squibb has revealed a $275m charge to write down illiquid securities with exposure to subprime mortgages.

The move by the US drugmaker came after it marked down by almost half, to $419m, the value of so-called "auction rate securities" previously valued at $811m.

The securities represented interests in structured debt investments backed by collateral that included mortgages - some of which were residential subprime - credit cards, insurance securitisations and corporate bonds.

More at the FT

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