$126 Million Loan OWIC Cancalled, Trader Called In Sick
The funnest news of the day comes from LoanConnector, that follows up on the story of a previously scheduled $126 MM cash loan OWIC due today at 3pm, which was supposed to take place today. The reason for the cancellation: the trader running the auction is out sick. Of course, the dramatic market reversal has nothing to do with it.
The $126 million cash loan OWIC originally due today was cancelled, sources said. The trader running the auction is said to be out sick.
As reported earlier, the portfolio contained 40 names, including Graphic Packaging, Cablevision Systems, Michaels Stores, HealthSouth, TRW Automotive, Constellation Brands and Del Monte. Notional amounts on offer range from $1 million to $7 million.
Offers were originally due at 3:00 pm today.
As a reminder, an OWICs (Offers Wanted in Competition) is the opposite of a BWIC, and represents a solicitation of offers for a given portfolio name from managers who want to offload existing positions or as a hedge to existing short LCDX exposure. There was a time in 2007 when the emergence of a single index or CDO BWICs could push the market up or down by half a percent. These days, the relationship seems to have flipped.