Analysis of CapitalSource: Part III
April 2nd, 2009
Dan Wieman submits:
So far, I’ve looked at CapitalSource Bank (CSE) and CapitalSource’s net leased health care properties. The two combined have a book value of almost $1.3 billion and intrinsic values that are likely 20% higher than this value. Yet CapitalSource has a market cap below $500 million.
Today I’m taking a look at CapitalSource’s interest in six separate securitizations. These bonds were issued between 2004 and 2007, and CapitalSource retained all classes subordinate to triple-As. Because of the amount of these securities retained, CapitalSource believes that they are the primary beneficiary of each issue and therefore record all the individual trusts assets and liabilities on their own balance sheet.
