RE:RE:RE:Can you educate me on bondsHi 123
Yes I have a painful decimated position in the equity and a recent long position on the senior secured first lien 9%. notes - I bought at 86.25. We have 4 billion dollars in assets and a 330 million dollar first lien issue, its a diversified portfolio and I am comfortable as bankruptcy is several years away. The Amco earnout payments to cinven will be met and there is no 72 million dollar finders fee due.
Worst case scenario - get 40 cents back on the dollar in five years time from a note that has an effective annual yield in excess of 10%.
Shorting the bonds - you are on the hook for the effective annual yield to the buyer. I am impressed if you can do it.