Etihad-linked bonds stay afloat despite downgrade:
"Some $1.2 billion in bonds issued by an Etihad Airways-linked special purpose vehicle only lost a few points in the secondary market after Fitch downgraded them to “CC” last Friday, putting the paper just two notches above default.
The bonds’ cash price was a few points above 80 cents on the dollar on Wednesday. Fund managers say they should be at least 20 points below that, but the discrepancy reflects expectations of financial backing by Etihad, the borrower of reference under the special purpose vehicle.
However, investors are questioning whether such support would actually materialise."
'via Blog this'
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