re bbi/beppa crossover, page-10

BEPPA, as a hybrid debt security, should not trade in tandem with the equity. There is really very little correlation. However, what we have seen over the past six months is a major sell off in the equity(BBI) and the debt(BEPPA) by two very large holders. You can see how the seller of BEPPA is not one bit interested in "value" or "long term". They want out and showed their hand clearly yesterday. They saw huge buying on the close for BBI so decided to show 10M BEPPA for sale at parity to try and entice volume buying in BEPPA. The fact that "debt" ranks higher than "equity" and also that there is 4c per BEPPA owed in accrued interest is proof enough that BEPPA should never trade at parity with BBI, but it is because of the forced seller.
BEPPA is a strange one. It's either worth zero or $1.04 at maturity. I'd settle for half way.