Fight Debt with Debt

rffrydr · Posted: Wed Mar 25, 2009 9:29 am Post subject: Fight Debt with Debt

Hertz now in buyback mode. Again, the hurdle is a legal one:

rffrydr · Posted: Wed Jun 10, 2009 8:55 am Post subject:

The trend gaining force in asia--as an improvement!

Asian corporate bonds

Published: June 10 2009 09:29 | Last updated: June 10 2009 12:05

Offshore investors in Asian corporate bonds have always had a masochistic streak. As they are typically lending to the holding company, rather than the operating company – where the assets are – they have never been in any doubt they would come off much worse than onshore creditors, should push come to shove.

And they would be prepared for pretty rough treatment along the way. One landmark case was Asia Pulp & Paper: when it hit the skids eight years ago the Indonesian-controlled firm kept paying interest to local investors while freezing payments to foreign creditors. Free-roaming hedge funds seeking tremendous yields have got used to this uneven treatment, and tried to price it in.

As troubles mount for issuers this time around, the usual inequalities are surfacing. Take Asia Aluminum, the housing-frame maker that entered voluntary liquidation in March: according to liquidator Ferrier Hodgson, bondholders may get 19 cents on the dollar, while Chinese banks will probably recoup all that they are owed.

But what is different now is that issuers are using public market tenders to try to resolve situations before default. APP simply shut off foreign bondholders, leaving lawyers to fight it out; in Asia Al’s case, it launched a tender offer to buy back the debt. The offer may have been a low one – 27 cents in the dollar, when the market bid-offer spread was 20-30 – but the fact it was made at all was a step forward. Two other mainland Chinese bond issuers – Shanghai Real Estate and China Glass – have since followed suit with tender offers at big discounts to face value. Dealers across Asia are sifting about a dozen standing orders from other Asian issuers in varying states of distress. If this is an omen for the Asian high-yield market to come, it is an encouraging one.
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Today is the Tomorrow you worried about Yesterday!

rffrydr · Posted: Wed Jun 03, 2009 7:44 am Post subject:

Wall St. bankers looked in the mirror and did not like what they saw. So they decided to point a finger at someone else.

Turned on it's head this fundamentally capitalist mechanism becomes political:

"No Bond Safe From Obama’s ‘Shared-Sacrifice’"

http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_reilly&sid=a9HNldyokP.M

California's Republican Governor may be the first to put this to the test.
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Today is the Tomorrow you worried about Yesterday!

rffrydr · Posted: Wed Jun 03, 2009 7:35 am Post subject:

Rally taking this "stimulus" away. Blacstone's "Dark Prince" bitten:

http://www.bloomberg.com/apps/news?pid=20601109&sid=ad0.MjQYNR1U
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Today is the Tomorrow you worried about Yesterday!

rffrydr · Posted: Mon May 04, 2009 8:39 am Post subject:

1 Trillion bell-ringer:

http://www.forbes.com/2009/05/04/credit-junk-bonds-markets-private-equity.html
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Today is the Tomorrow you worried about Yesterday!

rffrydr · Posted: Wed Apr 15, 2009 7:59 am Post subject:

Makes its way all the way to India--to the Central Bank:

http://www.bloomberg.com/apps/news?pid=20601091&sid=a131VfrOKV_0&refer=india
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Today is the Tomorrow you worried about Yesterday!

rffrydr · Posted: Sun Apr 05, 2009 7:27 am Post subject:

Macquarie tendering:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aDsPczTxoOpM&refer=home