Good News & Bad News, page-2431

I’ll let you in on a little secret and you will be thanking me. Remember earlier today I ask if you have a Bloomberg terminal. I’ll stop beating around the bush.

Current until NY opens, that corporate bond is bid/ask 107/108 meaning the yield is dropping to 8.5% a far fetch from coupon 12%. I usually respect bond traders who are much more tuned to risk assessment so the market is looking at the survival of PLS favorably.

A few scenarios at play with the contradiction. Either the Bond traders are not aware of the risks OR equity traders are too pessimistic. Without reading up on those corporate debt fine prints, my guess BH are well protected by collateral hedged to that debt and in this super low yield environment I would too be buying those yields!

So maybe we are at the lows of the market condition. Good luck.