RE:someone walk me through the short box tradeRad, How did you get into the first lien notes? I thought they were only available to institutional investors from Goldman? And I agree that there is a pissing contest, but it is a question of between who. I think it is between the secured holders now and judging with what has come out of the company in the last two months it has been for quite some time. Now I get why RBC is pissed - they have probably the most to lose here. Looks like Goldman just limited their loss on the unsecured side and moved into the first lien notes or does everyone know this and Im just slow on the uptake?. Also do you know who holds the two bridge loans due in 2017? I'm too lazy to go through that 200 page document that was filed on SEDAR on their creditor arrangements. Ugh.
rad10 wrote: I am just a blue collar doc - grinding out a living and investing to retire a few years earlier - got caught holding the bag on this garbage. Walk me through this box trade. It seems like we are caught in the middle of a peepee contest with the big boys...........
1 - the secured first lien hasn't budged since early november (I have a few thousand face value in this at 86 and change)
2 - impressive rally on the common over 2 trading days (my cost basis is nearly 20 bucks - ouch)
3 - non secured debt is dropping. (no exposure)
How does squeezing the non secured debt benefit the stock? The non secured is higher up the capital structure. Is it walked down in order to load up, or for it to be bought up and retired by the company - if so how does it get walked down?