• Gold Standard I...
    07/24/2014 - 01:47
    There is confusion over what legal tender law does. It doesn't force merchants to accept dollars under threat of imprisonment. It attacks lender, by granting debtors a right to repay in dollars.

Bond

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Russian Bond Market Facing 80% Yields





Despite some muddled explanations from its administration on how Russia may or may not be in fact filing for private sector (but definitely not sovereign) bankruptcy, this story shows why some sort of default is imminently unavoidable as essentially the entire Russian private sector is now shut out from the primary bond market, with no foreign bond issues since August 2008.

 
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Overview of Recent Secondary Market Bond Repurchases





In the past 2 months, while many investors were concerned that the bottom is falling out of the market, CFOs were busy buying back debt in the secondary market. Note that this is not buying back debt in formal registered exchanges, which due to prevailing distressed levels, would have been classified as distressed exchanges which usually are branded as events of defaults by rating agencies. So instead companies decided to buyback existing debt at substantial discounts, netting not only no rating agency attention but a potential upgrade down the line.
 
Tyler Durden's picture

Overview of Recent Secondary Market Bond Repurchases





In the past 2 months, while many investors were concerned that the bottom is falling out of the market, CFOs were busy buying back debt in the secondary market. Note that this is not buying back debt in formal registered exchanges, which due to prevailing distressed levels, would have been classified as distressed exchanges which usually are branded as events of defaults by rating agencies. So instead companies decided to buyback existing debt at substantial discounts, netting not only no rating agency attention but a potential upgrade down the line.
 
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Intelsat New Bond Issue Faring Very Well In Weak Credit Market





Intelsat came to market in a Goldman Sachs syndicated bond offering for $400 million of 8.875% Senior Notes due 1/2015. The B3/BB- issue for reference entity Intelsat Subsidiary Holding Company, had been upsized from $200 million, and was snapped up due to its original issue discount, pricing at 88.5% for an 11.6% yield. The proceeds will be used to pay down existing debt.

 
Tyler Durden's picture

Intelsat New Bond Issue Faring Very Well In Weak Credit Market





Intelsat came to market in a Goldman Sachs syndicated bond offering for $400 million of 8.875% Senior Notes due 1/2015. The B3/BB- issue for reference entity Intelsat Subsidiary Holding Company, had been upsized from $200 million, and was snapped up due to its original issue discount, pricing at 88.5% for an 11.6% yield. The proceeds will be used to pay down existing debt.

 
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Media Popularity Rater Nielsen Coming to a Vicious HY Market with Bond Offering





The expectation is that Nielsen Co. (Caa1/CCC+) will be coming to market momentarily to take advantage of "demand" for junk debt. Apparently the issue will be $300 million maturing in 5 years. We say the OID will be 25 points and we also take the under.

 
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