RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Segments of Bbd with big growth potentialIf that's right. Which I would doubt. Because when an institution does a placements for a loan. Whether the funds are from one individual or 1,000 different individuals, it's all the same. Let's just say it's Goldman Sacks that does the placement.There may be 1000 individuals that are participents in the placement to get $1B. But the lender Goldman acts as it is one Mortgage/Charge, and negotiates a deal for it with Bombardier. The Loan/Bond/Note still has Terms in it for Pre-payment, or discharges, and penalties etc. Those Mortgage documents could be 100 pages long to protect both the Lender and the Borower
Either way those Bonds can be discharged, and penalties paid this year, and we go on. Some can be refinanced as I've already said with 35%to 40% down. Therefore no high interest rates beyond 2022.
Don't tell me you can't do that either (discharge). Because NOBODY is this dumb to get into these kind Mortgages. NOT even Bombardier. If lb1 has proof to share with us, supporting that statement? I'd be happy to read through all the Bond/Note Documents.
Loans,bonds and Notes are not the same things.
Loans are made by 1 entity or more if syndicated, usually up to 20 participants. Terms could be changed at specific conditions, all defined in the agreements. Leaders of the syndicate (1 or 2) made the communications to all the participants, Usually financial covenants need a 66% vote but reimbursements, rates and securities need 100%. The limited number of participants made the exercise efficient.
Notes and bonds are sold by brookers by units as low as 1,000$. So, for a 1 B$ bonds, there could be thousands bondholders. There are no modifications possible. Imagine contacting thousands of participants !! Nothing is written for modifications.
The texts allow reimbursements with or without penalties and what will happen in case of default by the borrower.
If you hold bonds do you even been reached for modifications ?
The answer : No
What if you bought bonds at defined rates and terms and two years after the brokers reduce the interest rate ? Had you sign something allowing them to accept this for you ?
The answer: No
Did you even received anticipated redeemtions , with or without penalties ?
The answer : yes.