a renewed equity sell-off will cause losses on credit-linked investments

NoClue

Senior Member
Vietnam, Vietnamese
Hi
I am reading a stock market report, and here is the whole text.
Lenders including UFJ Financial, National Australian Bank and DBS tumbled.
There's concern a renewed equity sell-off will cause losses on credit-linked investments.

Separately, DBS said it has more collateralized debt obligations than previously disclosed.
########

"We're in for slow down, but I think we're quite away from recession.
I think our economy is growing at fairly steady rate, and we continue to do so
but much slower than most people are expecting or wanting."



Can you please help me understand the underlined sentence? What is renewes equity sell-off?

Is the blue and green paragraphs talk about 2 different things? Who is "we" that it referes to, DBS or the economy?

(Does it just say that DBS is owing more than it realised? Why doesn't it say anything about stock?)

Is it a hard question? Please help me.
 
  • bibliolept

    Senior Member
    AE, Español
    A sell-off of equities has occurred previously. If this start again, if the sell-off is renewed, it may lead to a reduction in the values of investments that are affected by credit (such as banks or credit associations, whose value is affected loans or lending).

    Collateral debt obligations, as the name implies, are backed with assets; they can be quite complex and there are many variations, depending on what exactly you want to do and whether your interest is in arbitrage between traches or if it more straightforward. I believe the writer is saying that DBS owns these CDOs, and so it may see lower return on these investments.
     

    NoClue

    Senior Member
    Vietnam, Vietnamese
    Please correct me if I am wrong:

    "Back stock price dropped because investors think shares will be sold off in the mass. The share sell-off lead to loan (principal?) being reduced ? <-How?

    To explain for the reason they didn't disclose their debt, DBS said the economy was slowing and growing at a steady state (?) but they were trying to cope with it. "

    These sentences aren't making sense very much, are they?
     
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