Performing paper dropped to a cost maybe not seen before into the loan market – with many names investing south of 70. This created the opportunity for issuers aided by the monetary wherewithal and the covenant room to repurchase loans using a tender, or into the open market, at costs below par.
Sub-par buybacks have actually deep origins into the relationship market. Loans didn’t suffer the purchase price decreases before 2007 to help make tenders that are such, nonetheless. In reality, many loan papers do maybe maybe not offer a buyback. Sub-par loan buybacks are another strategy that expanded out from the bear market, that started in 2007. weiterlesen