American International Group (AIG) intends to keep up to a quarter of a derivatives portfolio from its Financial Products unit, which was behind the insurer's near collapse, a spokesman said on Wednesday.
AIG will keep derivatives with $300 billion to $500 billion in notional value as it unwinds positions at AIG Financial Products. AIG Financial Products will cease to exist, and either AIG or an external party may manage the positions that remain.
AIG wants to keep those positions because they have been de-risked and promise an upside as the markets improve, the spokesman said.
AIG Financial Products has cut outstanding trades to a notional value of $940 billion from about $1.9 trillion in September 2008 and contracts to 16,100 from 44,000.
In a February 2009 interview, Gerry Pasciucco, the unit's chief operating officer, said it was possible some assets better suited to a "run-off scenario" may linger on the firm's books beyond 2009, but were expected to be few in number.
AIG will keep derivatives with $300 billion to $500 billion in notional value as it unwinds positions at AIG Financial Products. AIG Financial Products will cease to exist, and either AIG or an external party may manage the positions that remain.
AIG wants to keep those positions because they have been de-risked and promise an upside as the markets improve, the spokesman said.
AIG Financial Products has cut outstanding trades to a notional value of $940 billion from about $1.9 trillion in September 2008 and contracts to 16,100 from 44,000.
In a February 2009 interview, Gerry Pasciucco, the unit's chief operating officer, said it was possible some assets better suited to a "run-off scenario" may linger on the firm's books beyond 2009, but were expected to be few in number.
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