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MF Global Cancels $250 Million 10 Year Bond Offering Due To "Market Conditions"
From Bloomberg:
MF Global Ltd., the futures and options broker, canceled plans for a $250 million offering of 10- year senior notes, according to a person familiar with the matter who declined to be identified.
The offering was canceled because of “market conditions,”
the person said.
And some trader commentary:
Hearing the [MF Global Ltd "MR"] USD250m SEC registered 10y issue has been pulled due to market conditions. JPM sole books. Co-mgrs: Citi, MF, Wm Blair. Rated Baa2/BBB.
That's not good for the equity bubble chasers. Credit is always right in the end. And if even JPM can't sell an IG bond, the window is now closed, except for the momos chasing every offer higher.
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Even more reason for Uncle Benny to keep on printing.
Why would a futures broker need to borrow $250M?
Ah shit. Time to close that account. I wonder how their Harris bank is doing?
Perhaps they were short silver or gold. Big mistake.
This so reminds me of the National Lampoon "Vacation" movie clip where Chevy Chase is watching Christie Brinkley while eating his sandwich, only to find out the dog pissed all over it. While he spits his sandwich out, the mother-in-law shrugs and eats her's anyway.
http://www.youtube.com/watch?v=C1Zp7vfyew8
tried to price it last wednesday (wtf day b/f thanksgiving). prelim assumption had it priced like a junk bond (yield 9.75%). and still couldn't get it done.
market conditions my ass.
MF Global was the firm that had a rogue trader cause a $141mm loss last year - they're a broker and supposedly don't take risk positions - theyr;e the Bear Stearns of commodities brokers. I wouldn't lend them a shiny nickel even if the Dow were at 100,000. How short people's mememories are.
JPM should buy them because they can always offload them on teh fed if/when they go bad.
What? Motherfucker Global?
Goddam.
-MobBarley
I can't speak to the specifics of the bond offering, but to clarify, MF, in addition to typical FCM offerings, last I knew, also provides some customers with bilateral OTC products in which case they can and often do extend credit to said customers. From their latest 10Q "Engaging in matched-principal transactions and other transactions exposes us to market risk. We take positions for our own account primarily to facilitate the execution of existing client orders or in anticipation that future client orders will become available to fill the other side of the transaction. In the future, we may increase our principal trading activities and, as a result, our exposure to market risk, as reflected in our trading value-at-risk, could increase."