Friday, March 6, 2009

Carlyle Capital Corporation Lives?

How many Carlyle Capital Corporations did The Carlyle Group have? One CCC declared bankruptcy in March 2008. Yet another is listed on the Irish Stock Exchange. Structured Credit Investor reported the Irish CCC sold its interests in four collateralized loan obligations sponsored by the Carlyle Group to certain affiliates of the Carlyle Group. CCC expects a $30 to $40 million loss from the move.

Congress passed a stimulus bill that included $25 billion in tax breaks for firms buying back their own debt. Was that the reason for the sale?

Irish CCC will keep mortgage backed securities issued by Fannie Mae and Freddie Mac. How might they play in the yet to be revealed public-private partnerships (PPP)? Will CCC be able to sell them at a profit to a PPP fund, guaranteed by taxpayers? Stay tuned.