Pressure on at Citigroup

Citigroup reports earnings on April 18. So it was imperative that they got a deal for those LBO loans they just sold, notes a Seeking Alpha item. Still, you have to wonder how much this will really help. Most assume it is a step in the right direction, but Citigroup continues to have a lot more toxic debts to grapple with, notably lots of CDOs. People will feel better when these sorts of debts are definitively dealt with. As for the leveraged loans, they help the picture that Citigroup will present on April 18. Overall though, might they regret the move in the long term? The leveraged loan market has been rising slowly recently. Citigroup sold for about 90 cents on the dollar. The buyers may end with the better trade. Then again, Citigroup wasn't exactly bargaining from strength.  

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