Is this the beginning of the end for Eddie Lampert's exercise in financial engineering that is Sears Holdings Corp? Bloomberg reports that three of the biggest insurance firms for Sears' suppliers are seeking to reduce coverage... which has led to:
*SEARS 'MEDIUM-SIZED SUPPLIER' VENDOR SAID TO HALT SHIPMENTS AS INSURERS REDUCE COVERAGE
The stock has been halted twice on volatility limits and is down 10% for now. SRAC 5Y CDS are offered at ~39% upfront, implying around a 87% probability of default.