Secondary bonds take a dent as rental company hits reverse

By Euan Hagger

Friday, May 04, 2012

Bonds from a car rental company were hammered in the secondary market yesterday, as holders panicked over apparent weak support for a new issue

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Comment by: Anonymous. Posted 11 years ago [2012-05-06 15:12:05]

This mystery may require the (somewhat modified) old saying "cherchez la investment banker". It's possible the 9.735% bonds of 2018 tanked because the banker shorted this issue (in cash or cds) as a hedge to its risk on the new issue. I also wonder if the same investment banker gouged the borrower mercilessly on the swap restructuring.

CLOs

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