Tuesday, October 25, 2016

BOND DEAL: Commercial Bank’s Rs5B debt issue oversubscribed. Time the CBSL Babies do the same!

We were just informed that the Commercial Bank issue of Rs5B of listed debentures was oversubscribed 2 times, and so they will go up to Rs7B.
While the cretins at the Central Bank have been able to craftily shift the blame of their incompetence to Perpetual Treasuries, if they did what Commercial Bank just did, NO ONE will be the loser and the Country will GAIN.

So how about doing this openly for public bidding? I am using this example to explain to the uninitiated General Public how a simple form of debt auction is done. It is clear if there was some favoritism, then it is ALL THE FAULT OF THE CENTRAL BANK STAFF WHO ALLOCATE WHO GETS HOW MUCH, that is at the heart of the abuse. That is how the illegal Private Placements were done by Nivaard Cabraal for so many years, over 6 years I think. Where is the shouting about that?

It is this simple concept that the COPE chairman, who relied on the Auditor General’s comments, does not understand. The Auditor General on the other hand does not appear to have totally understood how important his words are in making his determination of matters such as a loss or profit to the CBSL, because is completely depends on the supply and demand and the prevailing market rates.

So if we take this example above, one can say that Commercial Bank priced their Listed Debenture too favorably, and if they priced it at 11.5% instead of the 5 years at 12% and 10 years at 10.25% it would have been better!

IT IS EASY TO SECOND GUESS and rates and perceptions vary on a daily BASIS, and this is where the PRIMARY DEALERS COME IN to take some of the risk out of the guessers at the Central Bank. Therefore the Auditor General is WRONG to lay the blame on Perpetual for any loss, as it is the CENTRAL BANK which decides HOW MUCH, AT WHAT RATE, TERM to allot.

HOW CAN PERPETUAL BE BLAMED FOR BEING GIVEN THESE BONDS?

It is time some respectable people, and NOT JOKERS LIKE WA WIJEWARDENA to opine on this matter, and once and for all shut these know it all KNOW NOTHING Columbian Over Educated Johnnies out of their ignorance.


It is truly SHAMEFUL that so many ignorant people have determined, that due to the Press which is the MOST ignorant, and have NOT done their job of explaining what it is that was wrong, that a crime in fact took place. 

WHERE IN THE CRIMINAL CODE IS THEIR ANY WRONGDOING?

If you read the attached links you can see how ignorant everybody is. COPE especially, but also the Auditor General and most of all the General Public, in the behavior of the CENTRAL BANK IN THEIR COMPLICITY IN CRIME, and WHO SHOULD ALL BE IN JAIL FOR THEIR WANTON LYING IN LEADING EVERYONE ASTRAY!

http://www.dailymirror.lk/article/Take-action-against-Arjun-Aloysius-COPE-117997.html   TAKE ACTION AGAINST WHOSE WRONG DOING? CBSL's

http://www.ft.lk/article/575920/Fireworks-at-COPE

http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=154363

3 comments:

  1. It is time that COPE if they recommend that someone be punished, show what line of the Criminal Code has been broken and what evidence if any they have to back that up. It is clear this is merely a political statement to placate an ignorant public baying for the wrong blood.

    It is time to name and shame the Central Bank High Ups who are the most guilty as THEY DETERMINE WHO GETS WHAT and so they are open to be compromised.

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  2. The ignorance of the articulate is the reason why Sri Lanka will never be able to earn its rightful place in any context, as the rubbish that comes out of people's mouths when they open it is indicative of their thought processes trained out of their by rote learning and inability to evaluate and dissect what is read and written to determined the lies, truths and half truths, so that any conclusion they make is NOT on heresy but reasoned thinking.

    Talk about so much anti Buddhist thinking in a pseudo Buddhist country.

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  3. Another thing needs to be added to make this understood. Namely that you arrange an overdraft facility to buy these bonds, be they Govt or Commercial Debentures as you risk in that you do not know how much you will be awarded by the CB or in this case Commercial Bank. As I understand it, Perpetual had a huge line of credit from BOC due to their vast group collateral, which helped them bid for that Bond in question. Obviously people are talking rot, using circumstantial evidence such as " within weeks of appointment, and a change to the auction system, the son in law made billions! - so there MUST be collusions" that is called Sri Lankan logic. NO wonder the state of the state is such. It reflects the mindset of the island mentality people

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