Bear Stearns Announces the Formation of Liquid Funding, Ltd.Business Editors NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New York--(BUSINESS WIRE)--November 19, 2001 Entity Will Be The First Ever Special Purpose Secured Funding Company The Bear Stearns The Bear Stearns Companies, Inc. (NYSE: BSC) is the parent company of Bear, Stearns & Co. Inc., one of the largest global investment banks and securities trading and brokerage firms in the world. Companies Inc. announced today the formation of Liquid Funding, Ltd., the first triple-A special purpose company specifically created to participate in the trillion dollar repurchase agreement Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. (Repo) and total return swap Total Return Swap Any swap in which the non-floating rate side is based on the total return of an equity or fixed income instrument with a life longer than the swap. Notes: Total return swaps are most common in equity or physical commodity markets. markets. Liquid Funding will provide secured financing to a wide range of institutional customers against a broad array of financial securities. Liquid Funding is the first vehicle to earn a triple-A rating and have the flexibility to effectively compete head-to-head with the largest players in the market. The company is authorized to issue up to $20B in financing through Medium Term Notes, Commercial Paper and Repurchase Agreements. Commenting on the formation of Liquid Funding, Warren Spector, Bear Stearns president and co-chief operating officer, said, "We are extremely pleased to announce the formation of Liquid Funding. We worked with the rating agencies for more than a year and a half to develop a sophisticated and robust risk model. This structure represents the latest evolution in structured financing. Much in the same way banks move assets like mortgages, receivables and loans into tradable securities, we now have the option to execute financing transactions in this company." Leonard Feder, a senior managing director in Bear Stearns Derivatives Department, added, "We believe Liquid Funding will prove to be a valuable addition to the Repo industry. As the securities industry has consolidated, the number of providers of repurchase financing has dwindled. Liquid Funding will help customers by providing them with additional sources of financing. In addition, Liquid Funding's structure will increase our ability to serve all of our customers' needs. " Liquid Funding is rated triple-A by both Moody's and Fitch. Founded in 1923, The Bear Stearns Companies Inc. (NYSE NYSE See: New York Stock Exchange : BSC (Binary Synchronous Communications) See bisync. ) is the parent company of Bear, Stearns & Co. Inc., a leading investment banking and securities trading securities trading, financial activity involving transactions of property such as stocks, bonds, commodities, and currency (see securities). Although the trading of stocks and bonds dates back several centuries in many Western nations, the development of the and brokerage firm serving governments, corporations, institutions and individuals worldwide. With approximately $28.7 billion in total capital, the company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers prime broker and broker dealer clearing services, including securities lending Securities Lending When a brokerage lends securities owned by its clients to short sellers. Notes: This allows brokers to create additional revenue (commissions) on the short sale transaction. . Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , the company has approximately 10,500 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, San Francisco and San Juan; and an international presence in Beijing, Dublin, Herzliya, Hong Kong, London, Lugano, Milan, Sao Paulo, Seoul, Shanghai, Singapore and Tokyo. For additional information about Bear Stearns, please visit our Web site at http://www.bearstearns.com. |
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