ARE YOU KIDDING!? Yes, that's right...a THIRD lien unsecured bond with a PIK-TOGGLE with an 8.80% coupon. That's only a few hundred basis points above the FED FUNDS rate a few months ago! If this isn't the quintessential sign of a credit bubble, I don't know what is.Saturday, August 9, 2008
Memories of a Time Before the Credit Crunch
While looking through a fund's debt holdings, I came upon the following bond issue:
ARE YOU KIDDING!? Yes, that's right...a THIRD lien unsecured bond with a PIK-TOGGLE with an 8.80% coupon. That's only a few hundred basis points above the FED FUNDS rate a few months ago! If this isn't the quintessential sign of a credit bubble, I don't know what is.
ARE YOU KIDDING!? Yes, that's right...a THIRD lien unsecured bond with a PIK-TOGGLE with an 8.80% coupon. That's only a few hundred basis points above the FED FUNDS rate a few months ago! If this isn't the quintessential sign of a credit bubble, I don't know what is.
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