As at 29 November 2009, National Bank of Abu Dhabi (NBAD) had US$345 million exposure to the Dubai World Group comprising the following:* US$ 114 million nominal invested in the Nakheel December 2009 Sukuk and marked Available for Sale and marked to market through equity; * US$ 6 million nominal in the same bond held in our Trading Portfolio and marked-to-market
; * General corporate loans of US$ 100 million and US$ 125 million to Nakheel and Limitless respectively NBAD has no exposure to Dubai World itself.
* $114 million nominal invested in the Nakheel December 2009 Sukuk and marked Available for Sale and marked to market through equity * $6 million nominal in the same bond held in our Trading Portfolio and marked-to-market
* General corporate loans of $100 million and $125 million to Nakheel and Limitless respectively
Either event would result in a "huge paper loss" for marked-to-market
investment portfolios, he said.
price at which the security is deemed to have been sold becomes the new basis in the position.
Provided the hedge qualifies for hedge accounting under SFAS 52, the parent should record the hedge's marked-to-market
adjustments directly to stockholders' equity (that is, the current translation account).
Credit exposures arising from these relationships consisted of the current marked-to-market
value of the derivative transactions as well as the potential exposure that might arise from future changes in these market values (the potential future exposure or PFE).
It's like breaking a material down to its molecular structure." A highly charged issue to come, he added, is marked-to-market
accounting for investment securities.