Re: Explain \"buying debt\"
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whats the relative price volatility of corporate debt after a chapter 11 files? i'd think it would rise significantly.
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This depends entirely on the pre-filing capital structure of the entity, and whether in a reorganization, you're above or below the cramdown/pivot security.
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what is a cramdown/pivot security? is that the security that is in between the first lein creditors and the bondholders? probably not since that is a guess outta my ass but i am curious as to how that goes down.
no pun.
thanks,
Barron
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