Investing at PSE

World market are not doing well. It's a worldwide financial crisis. Philippines is also affected. Do you think it will be alright to buy stocks? What do you think is the best stocks to buy these days?

Philamlife - AIG

I read in a news that it might be out for bid and Yunchenco group is having a thought of putting a bid for it? I don't know how they will manage the company after CAP scandal? Tsk tsk tsk... They never learn...

Philippine Financial Market

As of today, Philippine financial market still not been able to recover from the onslaught of US credit crunch. Although, stocks gain some positive points but still not a good sign of better days. I still watching how the market would react to some positive news.

AIG Philippines

Yet another casualty?
Is AIG Philippine affected by the current woes of its parent company? According to financial experts, if it is traditional insurance operations like property, casualty, auto and life insurance to annuity and investment services, they are insulated and AIG still have the capability to pay claims.

It is also a very positive news that federal goverment release 85 billion dollars emergency loan and allowed to use 20 billion from its subsidiaries. This move is due to the fact that disorderly failure of AIG could further hurt delicate US economic situation.

The question now is, with AIG parent company's situation, how big is the impact to AIG Philippines?


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http://unhappyemployee.blogspot.com/
http://pagsamba.blogspot.com/
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BPS - Basis Point

BPS is a unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security.

The relationship between percentage changes and basis points can be summarized as follows:

• 1% change = 100 basis points, and 0.01% = 1 basis point.

So, a bond whose yield increases from 5% to 5.5% is said to increase by 50 basis points; or interest rates that have risen 1% are said to have increased by 100 basis points.

Exciting the Market

Other countries are now pumping in fund to money market. Japanese goverment injected 2.5 trillion yen in hope of strenghtening its economic outlook. Can the Philippine goverment do the same?

2008 US Financial Crisis

Lehman Brothers - Investment bank. Undermined by bad bets on real estate.

News:
Lehman Brothers said in a statement early Monday that it plans to file for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The 158-year-old investment bank had been undermined by bad bets on real estate -- the value of its shares declined 94 percent this year.

Merrill Lynch - Wealth management company. Suffered bad real estates bets.

News:
Bank of America plans to buy Merrill Lynch in an all-stock $50 billion deal, pending approval by federal regulators and shareholders of both companies, the bank said in a statement. The transaction is expected to close in the first three months of 2009.

Freddie Mac and Fannie Mae- Mortgage finance company. Suffered in the subprime mortgage crisis.

News:
This month, the U.S. government took over mortgage finance companies Fannie Mae and Freddie Mac. That was Washington's most dramatic attempt yet to shore up the nation's faltering housing market, which is suffering from record foreclosures and falling prices. That plan calls for the government to run Fannie and Freddie until they are on stronger footing.


Bear Sterns - Investment bank.

News:
Bought by JP Morgan Chase and Co.