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Non-Tech : Conseco Insurance (CNO) -- Ignore unavailable to you. Want to Upgrade?

To: Tunica Albuginea who wrote (3556)	10/16/2000 3:47:45 PM
From: 44magnumpower	Read Replies (1) \| Respond to of 4155

Conseco 1.2 billion deal priced Thursday. NEW YORK, Oct 16 (Reuters) - Conseco Finance, a unit of insurer Conseco Inc. (NYSE:CNC - news), is planning to come to market with a $1.25 billion asset-backed transaction this week, market sources told Reuters Monday. The offering from Conseco would be lead-managed by Merrill Lynch & Co. Inc. and it is 1.2 billion expected to sold with a senior-subordinate structure. The collateral being sold is home equity loans and the deal is expected to price Thursday.

To: Tunica Albuginea who wrote (3556)	10/17/2000 8:08:10 AM
From: Daniel Chisholm	Respond to of 4155

Green Tree was not the worst kind of " deworsification ". It is was a very profitable, high growth type of Insurance. Green Tree was a sub-prime lender, not an insurance acquisition. It was a very controversial sub-prime lender too, one that made very aggressive use of "gain on sale" accounting. Gain on Sale was a controversial practice because it involved booking accounting profits from loans when they were packaged and sold, even though the actual cash profits were to received as a stream of payments into the future. Furthermore, if any of the assumptions made at the time of sale were to change (prepayment rates, future interest rates, default rates), then the actual profits could end up differing from the originally booked profits. There is a saying that in the lending business, surprises are never good surprises. The problem with it is that moron Hilbert got taken in by sharp used car salesman Coon and overpaid for it. Hilbert got corrupted by too much power. Happens to many. He is gone .History. I believe it is Lawrence Coss you are referring to. Are you saying that Hilbert was corrupted, or stupid? It's not necessary to be corrupted in order to make stupid decisions, and vice versa. I think it would have been interesting to see what would have happened to Green Tree (and to Coss, with his incredibly, ummmm, "generous" compensation package from Green Tree) if it remained a standalone company. Could it be that Conseco was in trouble at the time, and used its high priced stock to attempt to "grow its way out of trouble"? People have a way, when faced with a choice between likely destruction and a high-risk desperate gambit, of choosing the latter. - Daniel