Bear Stearns Conference Call
Update: Q&A added.
Brian sends along this preliminary transcript (unedited) from the Bear Stearns Q4 07 Conference Call:
Fixed income net revenue for the Fourth Quarter was a loss of $1.54 billion, down meaningful it from a gain of $1.1 billion earned in the November 2006 quarter. Sequentially, fixed income revenues also decreased when compared to the gain of $118 million earned in the August 2007 quarter. The quarters results include net inventory markdowns of $1.9 billion, which included the $1.2 billion loss previously disclosed on November 14th. During the quarter, the Company had gross inventory markdown s of mortgage assets of approximately $3.2 billion. Partially offsetting these losses were hedging gains of approximately 1.3 billion.
A large component of these losses were approximately $1 billion of losses incurred related to CDO’s and the unwinding of CDO warehouse facilities where customer loss mitigation arrangements proved to be inadequate. At November 30th, […]
