Some GO bonds changed hands for 26c yesterday. Almost no liquidity. I think for there to be liquidity they would be trading under 20. Which raises month end valuation questions. The Greek strip which had a 50% haircut traded in mid-20s before the deal and bottomed at 6.5c on a pre-restructure basis/ 13c post restructure after the deal as retail dumped. Seems similar here with retail clinging on to bonds they bought in primary market. Except the haircut could well be more then 50%.
Seems like bondholders lobbying a bankruptcy artist for a Federal bailout isnt going to plan.
Trump will push I think for the judge to big bath the debt before agreeing a dime of development aid. Any PR GDP warrants may have value though.
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