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To: Andy Thomas who wrote (250232)	7/15/2003 5:00:18 PM
From: Secret_Agent_Man	Respond to of 436258

they will dump it later for the writeoff's and hide some misc-schitt under it's cover... no doubt another excellent move, you jus have to look at tings ina difrent lite-s

To: Andy Thomas who wrote (250232)	7/15/2003 5:22:30 PM
From: Perspective	Respond to of 436258

Actually, it is rightly a "premium". Sears is trasferring to C the right to collect on $29B receivables, if they can. Assuming they can collect the vast majority, they must pay $29B to Sears in consideration. Further, the assets may yield a positive rate of return in the future (may), so they are paying an additional $3B. I don't know what premiums have been paid in the past for credit card receivables, but this seems to be reasonable. A good CC portfolio could yield near 10% annual returns after interest and late fees, net of borrowing costs, assuming defaults don't chew it all up... BC