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  "documentTitle": "Manulife Financial Corporation (MFC)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2018-10-04 00:00:00",
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  "notes": "This is a research note from Muddy Waters regarding a short position on MFC.",
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      "text": "Per Manulife’s own expert witness, Manulife is effectively on trial for its life.",
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      "text": "Footnotes 1-4 detailing LIBOR rates, investment risks, and hedge fund connections.",
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      "text": "Mosten owns a specific insurance contract from 1997, the Architect IIe universal life insurance policy. Mosten argues it can deposit an unlimited amount of money with Manulife and receive an annualized guaranteed return of at least 4.00%.",
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      "text": "However, it could get even worse for Manulife. Mosten argues that it is entitled to receive an 0.85% bonus each year on the policy anniversary.",
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      "text": "At issue is one of Manulife's insurance contracts, which was purchased by a hedge fund called Mosten Investment LP. Should Mosten prevail, it could lead to billions of dollars of losses at Manulife.",
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      "text": "Muddy Waters is short Manulife Financial Corp. (\"MFC\"). MFC's life insurance subsidiary, The Manufacturers Life Insurance Company (\"Manulife\"), just concluded a trial that could significantly damage its earnings, capital, creditworthiness, business, and solvency – per its own expert's sworn affidavit.",
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      "text": "These terms alone could financially cripple Manulife, which would take losses (a) on a cash basis, quarter after quarter, on the negative carry, and (b) immediately on an accrual basis. Assuming a CAD 1M LIBOR of 1.052% would mean a negative 2.948% spread.",
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