CreditSlips

The Puzzling Pricing of Venezuelan Sovereign Bonds

10/07/19

by Mark Weidemaier & Mitu Gulati

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Badawi & de Fontenay Paper on EBITDA Definitions

10/05/19

I confess that, on its face, this did not strike me as the most exciting topic to read about (and that comes from someone who writes about the incredibly obscure world of sovereign debt contracts).  After all, who even knows what EBITDA definitions are?  Sounds like something from the tax or bankruptcy code.  But don’t let the topic be off putting.  This is a wonderfully interesting project; and elegantly executed (here).  By the way, EBITDA stands for earnings before interest

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The Clock Is Ticking for the Sacklers

10/02/19

It's funny how what goes on in one bankruptcy case can sometimes point to looming issues in another. The PG&E plan exclusivity fight suggests an interesting dynamic looming in Purdue:  Purdue's own plan exclusivity could expire, which would completely upend the dynamic of negotiations with the Sackler family for a plan contribution in exchange for a non-consensual release of creditors' claims against them.  

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Puerto Rico (A Quick Take, Part II)

09/28/19

Coen, Andrew. The Bond Buyer; New York, N.Y., 30 Sep 2019:

Assured Guaranty, which insures a large amount of Puerto Rico debt, came out against the plan.

“Assured Guaranty does not support this plan of adjustment as it is premised on a number of terms that violate Puerto Rico law, its constitution and PROMESA," said Assured spokesperson Ashweeta Durani.

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Puerto Rico (A Quick Take)

09/28/19

So the debt restructuring plan is out. The New York Times indicates that the Oversight Board aimed to put the Commonwealth's debt at "less than" the average of the ten most indebted states. Not exactly a "fresh start" there, is it? Why not peg the debt to that of the average state?

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Matt Levine, Insider Trading and Mr. Potato Chip

09/26/19

Matt Levine is my favorite financial journalist to read on a regular basis because he is so darn funny (yes, there is lots of substance too, but I'm shallow and want to be entertained as well). Today's piece though, especially to someone who used to teach the law on insider trading, was priceless.

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Student Loan Crisis Driving Racial Wealth Gap

09/26/19

Twenty years after taking out student loans, white borrowers have paid 94% of their debt (at the median.)  Black borrowers, on the other hand, have paid 5%. While a disturbing 20% of white borrowers defaulted on student loans at some point during twenty years, a catastrophic 50% of Black borrowers defaulted.

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Small Biz Reorg Act Sleeper Innovations

09/25/19

Two aspects of the Small Business Reorganization Act of 2019 intrigued me as I looked more closely at this important new twist on Chapter 11 for the other 99%.

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