Michael de la Merced got a timely interview with BlackRock’s Laurence Fink this week, and the resulting story is well worth reading. But one question is not cleared up: what does this mean, exactly, on the subject of the $15 billion of subprime paper that BlackRock is buying from UBS?
Mr Fink is being cautious, demanding a 15pc return on the assets or UBS will have to take further writedowns, but the deal remains significant.
Is UBS really guaranteeing BlackRock a 15% return? And if so, what’s the point of "selling" the paper to BlackRock in the first place?