I also do not understand what they are waiting for, other than the right moment to sell a large block of Subprime RMBS's. ALL the value to Pref's, Converts and common is lying right there.
Don't foget CC has $700 million face of Orkney Re's debt. Most of the holdings are 2006 vintage, AA's, whose value will become much clearer in the next year or two. CC has to be one of the largest holders on RMBS and private-issue home mortgages (via GMAC). They know the business. Also, one has to consider two additional sources of value: NOL's and VIE's. I can see $300 million right there. How will they play those cards?
Getting back to my question (which you did not answer): what is the upside from here for CC versus pref's or the common? How do avoid giving significant value to the common? All the common is worth $13 million! Versus $600 for the Convts! C'mon, even at $1.00 per share it makes sense for them to buy the common out, IMO.
