Global Diversified Investment Grade Income Trust II - Net Asset Value as at July 31, 2007 - Further Decline in the Net Asset Value as at August 14, 2007

    MONTREAL, Aug. 23 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust II ("Global DIGIT II") (TSX: GII.UN) announces that its net asset
value ("NAV") per unit as at July 31, 2007 was $4.27 based on an indicative
price received from Winchester Capital, a division of Deutsche Bank A.G. (the
"Bank") as of July 16, 2007. However, the Trustee of Global DIGIT II has also
received from the Bank an indicative price to be used to calculate the NAV as
at August 31, 2007. If that indicative price, which was based on market
conditions prevailing on August 15, 2007, had been used to calculate the NAV
as at July 31, 2007, the NAV would be $1.08, representing a reduction of about
75% from the NAV calculated based on the July 16, 2007 market conditions.
    The Trustee understands that this reduction of about 75% is primarily
attributable to the continued turmoil observed in the United States subprime
and home equity mortgage markets, which in turn has triggered a significant
decrease in the pricing of the financial contracts but does not take into
account the turmoil or events in the Canadian asset-backed commercial paper
market that occurred during the past two weeks.
    In addition, Silverstone Trust ("Silverstone"), the counterparty to the
financial contracts entered into by Global DIGIT II, is one of the trusts
referred to in an agreement among a number of Canadian financial institutions
which was reported on August 16, 2007. A copy of the press release disclosing
that agreement was reproduced in a press release issued by Global DIGIT II on
August 16, 2007. Any restructuring of the senior debt of Silverstone may have
an as yet undetermined impact on the continuity or the size of payments made
to Global DIGIT II under the financial contracts. The financial contracts
between Global DIGIT II and Silverstone, together with financial assets
related to such financial contracts, constitute most of the assets of Global
DIGIT II and any material reduction or increase in their value will have a
significant impact on Global Digit II's NAV.

    About Silverstone

    Silverstone is a special purpose vehicle rated R-1(high) (short-term) and
AAA (long-term) by DBRS that funds the purchase of eligible assets by issuing
asset-backed commercial paper, extendible commercial paper and floating rate

    About the Global DIGIT II

    Global DIGIT II provides an economic interest in an equity tranche of
credit default swap agreements in respect of portfolios of mortgage-backed
securities, asset-backed securities, structured finance securities, synthetic
corporate exposures and other fixed-income securities.

For further information:

For further information: François Rivard, (514) 879-6405;

Organization Profile

Global Diversified Investment Grade Income Trust II

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890