Analysis of trading activity in Glitnir hf. claims
The Winding up Board of Glitnir hf. („Glitnir“) has commissioned an analysis of trading activity in Glitnir claims since the default in October 2008 (the „Default“) to September 2013 from the financial advisory firm Moelis & Company („Moelis“).
According to the analysis, whilst the market in buying and selling („transferring“) Glitnir claims has been very active, pre-Default creditors who have not subsequently sold their claims still hold 29% of Glitnir‘s claims by value (by number, 93% of Glitnir´s creditors).
The remainder are currently held by creditors who have acquired their claims after Default. Moelis has analysed the acquisition of these claims between the period leading up to the formation of the creditor register, between October 2008 and November 2009, and the period since. Moelis‘ findings include:
- By value, only 7% of Glitnir‘s claims (by number, 1% of creditors) are still held by creditors who have acquired these in the year following the Default when prices were lowest (most creditors who acquired claims during that first year have since sold these again to new investors). It is estimated that the average acquisition price for the claims acquired in this period was 14 cents in the Euro.
- 64% of Glitnir‘s claims by value (by number, 6% of Glitnir‘s creditors) are now held by creditors who have acquired their claims since the formation of the creditor register. Since the transferred claims on the register have turned over on average 2.3 times, with some individual claims having been bought and sold more than 12 times, these claims have on the whole been acquired relatively recently. It is estimated that the aggregate weighted average acquisition price for these claims was 28 cents in the Euro.
Moelis & Company is an independent corporate finance adviser which provides restructuring, mergers and acquisitions and other financial advisory services to clients. Moelis has been advising Glitnir‘s Winding-up Board since August 2011. In its analysis of the trading activity in Glitnir claims, Moelis describes the sources, assumptions and methodology involved in the analysis of trading and price development in the actual market and explains the basis for conclusions made in its analysis. Pricing and trading volume data are expressed in a graph as well as detailed figures in explanatory tables.