Find Docs

Salomon - IR 96 1 Q (Page 10)

Wodocs >> Sports : Snowboard, Skiing >> Salomon IR 96 1 Q Page 10
Salomon - IR 96 1 Q
Salomon Swapco Inc
Summary of Accounting Policies
Related parties
Swapco is organized as a legally and financially
separate, bankruptcy remote corporation from its
Salomon affiliates. As a result, Swapco's creditors rely
on Swapco's credit, not on Salomon's.
SBHC has contributed capital to Swapco for the purpose
of enhancing the creditworthiness of Swapco's
obligations. This capital is not available for Salomon's
creditors until Swapco's creditors have been paid in full.
Under the terms of its Certificate of Incorporation,
Swapco is required to have two independent directors on
its board and two independent officers responsible for
important aspects of day-to-day operations.
Swapco's assets are invested separately from those of
Salomon and are held by a third-party custodian.
Significant relationships between Swapco and its
affiliates are governed by formal agreements which are
designed to compensate each of the parties on terms
which approximate those which would prevail in
comparable arms-length transactions.
Certain Swapco costs are incurred, in the first instance,
by Salomon Brothers Inc or other Salomon affiliates on
Swapco's behalf. Such amounts are reimbursed by
Swapco on a monthly basis.
Swapco employees are all seconded employees of
Salomon Brothers Inc. As such, those employees
participate in medical and other employee benefit plans
of Salomon Brothers Inc. Swapco reimburses Salomon
Brothers Inc on a monthly basis for the full cost of that
participation.
16
Salomon Swapco Inc
Notes to Financial Statements
Note 1. Derivatives portfolio
Swapco's derivatives portfolio at June 30, 1996 included
transactions with an aggregate notional principal amount
of $132.7 billion. Each of those transactions is matched
with an offsetting trade with SBHC, producing a total
notional portfolio of $265.4 billion.
In addition, at March 31, Swapco had guaranteed options
written by Salomon affiliates with an aggregate notional
amount of $61 million. For these transactions, Swapco
has accepted a contingent liability only. Swapco will be
called upon to perform only in the event of a default on
the part of the Salomon entity which wrote the option.
The current market value of all guaranteed options, plus
a margin to protect against changes in value, is included
as part of Swapco's minimum required capital. At
March 31, 1996, Swapco also had hedge swaps with
SBHC, related to investment securities, with a notional
amount of $196 million.
The distribution of Swapco's notional book at March 31,
1996 by counterparty credit rating follows (dollar
amounts in thousands).
Notional Percent
Moody's rating
Aaa
$ 50,867,793
38.3%
Aa1
4,475,612
3.4
Aa2
31,360,641
23.6
Aa3
14,457,376
10.9
A1
18,087,055
13.6
A2
5,280,074
4.0
A3
3,410,441
2.6
Baa1
200,000
.2
Baa2
50,000
.0
Baa3
794,091
.6
Other acceptable counterparties 3,710,121
2.8
Counterparties rated below
investment grade
0
.0
$132,693,204
100.0
%
17

<< Previous       1 2 3 4 5 6 7 8 9 10 11 12 13 14 15       Next >>



Other Documents:
2010 Derbi Cross City 125, 2007 Vespa Granturismo, 2009 Suzuki KingQuad 750AXi Rockstar, 2010 Aprilia SportCity Cube 300, 2009 Keeway F-Act 50, IR 96 2 Q, IR 96 3 Q, IR 97 1 Q, IR 97 2 Q, IR 97 3 Q, IR 98 1 Q, MOODYS, ACCESSORIES, CLOTHING, GOGGLES 04, LENSES, MX GEAR ORDER FORM, consumer sweepstakes, vegas official rules, vtb fwd, vtm wc 12 24, AC power cord IEC, phase thermal pad mv, bja sa, bjs fwa u, erm sa, erm sb, ers 00a, ers sa, ers sb, sva sb, svm sb, vta sb, BWB SX, PFC SX, bjd sa, bsb sa hsa u, bwb sx u, erb 00a, erb 00b, erb fwb, erb hwa, erb hwb, erb sb, erb sz, erd sa, ert 00a, ert 00b, ert fwa, ert fwb, ert hwa, ert hwb, pfc sx u, svb sb, vtc 00a,


WODocs | |
All rights reserved. wodocs.com© 2009
WODocs


New Docs

Documents Category:
Arts (Design, Movies, Music, Radio, Television)
Automotive (Cars, Marine, Motorcycle, ATV, Snowmobiles)
Business (Biotechnology and Pharmaceuticals, Chemicals, Construction and Maintenance, Materials, Real Estate, Services)
Electronics (Computers, Motion Control, Power Supply)
Games (Board, Family, Party, Card, Construction, RC Toys)
Health (Animalm, Beauty, Healthcare, Medicine, Pharmacy, Surgery, Weight Loss)
Home (Accessories, Cooking, Decor and Design, Electrical, Family, Pets)
News (Newspapers, Sports, Television)
Recreation (Collecting, Hiking, Scouting, Survival, Travel)
Reference (Education, Libraries and Archives, Museums)
Science (Agriculture, Astronomy, Biology, Chemistry)
Shopping (Antiques and Collectibles, Clothing, Flowers, Food, Home and Garden)
Sports (Bicycle, Snowboard, Skiing, Other)