cba sells debt for 56c in the dollar, page-2

(Also posted by me on CER - most likely related to CNP though, IMO DYOR)

"Last night's auction saw the bank?s $110 million in debt sold at 56.5 cents in the dollar."

If the debt is for sale for 56% of the principal amount then CER or CNP could buy it for that price (well maybe a cent higher eg 57cents in the dollar) and retire it. Is ther no way this could happen??? Is there no cash to do this??

If more of the lenders would sell off their debt so cheaply and CNP could pick it up then the LVR could drop quickly. IMO

This would get rid of the debt quickly Other have commented if the hedge funds are picking it up, then they wont have much patience. If they are picking up debt for that price than their return is almost double the curent interest rate on the debt - not a bad deal as long as the company is ongoing.