SFI has a total of $3.9 billion in revolving debt capacity, of which $2.4 billion was outstanding at June 30. Maturities on these facilities are 2011 and 2012. I don't see this circumstance as a problem.
The huge discount to adjusted book value provides a cushion for any future permanent impairments in the loan book.
SFI has a very attractive and stable CTL portfolio.
When writeoffs abate (and they will) and NPLs are recycled into earning assets, SFI's earnings power will be enormous.
I do not believe the "business model" is broken. Lending has been around for a while. The previous funding model may be broken but that can be accommodated over time. At this point SFI does not need to grow to make tons of money.
The company is a premier asset manager that has brought home very attractive returns on equity on a comparatively unlevered basis. These skills are durable.
NRF I own and like. I got rid of RSO because of the Cohen connection and its size.
Any equity is a speculative play, but in SFI you're getting cover by acquiring the underlying assets at cents on the buck.
Nothing sinister or specific, just the extedned Cohen family has its fingers in a lot of pies, RSO, AFN, RAS, Resource America, etc., and some people don't like that. It didn't bother me at first but then started to bug me.