RE:RE:Can you educate me on bondsrad10 wrote: daveinmiss wrote: How was CXR able to sell something like $335 million (just my recollection) just 3 or 4 weeks which are now rated as basically 10 cents on the dollar or so? Am I missing something?
I see some good posts lately on the board by both shorts and longs which I appreciate and better than reading snide insults.
Where did you get the 10 cents on the dollar for the first lien senior secured notes? I get 87cents.
Someone here tonight - I thought it was juniorbullalive - confused the recovery rate sstated for the unsecured bonds (1-10%) as meaning the first lien notes were worth 10 c
The recovery rate now is at 1-10% on the unsecured - they are trading below 40 c on the dollar.
And the first lien notes are trading in mid 80's at the end of the week so you are close with 87 cents.
So when you said that anyone would be crazy shorting the bonds about three weeks ago when they were in the high 60s I guess you were wrong, huh? I am not short the bonds because I can't with my broker ... but I think whoever shorted the bonds are doing very good and things will be looking better after Friday's S&P downgrade because it looks like Bloomberg (and most playing the bonds probably use a Bloomberg Terminal) only picked up the downgrade on the first lien notes.
What I can't figure out is if people here think the company is not going into bankruptcy, why don't they buy the bonds - the 6 year notes are an amazing
36% yield. In a couple of weeks and after the Friday credit downgrade they could realistically be +45% yield. rad, I think I recall that you bought the bonds when you said it would be financial suicide to short them?