TSX:SOT.DB - Post by User
Comment by
Sunsurfer12on Aug 17, 2024 5:46pm
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Post# 36184462
RE:RE:RE:More people reading
RE:RE:RE:More people readingThey rank after banks but before equity..including the Class B..not saying there is no risk..there may be a grand bargain where debentures get a haircut but still safer generally than straight equity.
My speculation is there is enough equity in the after bank debt assets to fully cover the debentures..while equity holders would love to have the theoretical hammer of saying..if you don't agree to a 50% haircut we will just tank it all..but the problem is that on liquidation, i think the debentures will be made mostly if not fully whole..and interest rates are on way down which makes these properties more valuable every month that goes by..my opinion only and not investment advice.