I know really small about down payment trade as well as only proposed researching dual weeks ago.
I have seen corporate holds upon Etrade which have ratings of A- , A or AA- which have this unfolding . Some of them have the disastrous opinion since of the stream mercantile incident . Is the bound produce of twenty-five % value the default risks ? Is it the normal incident to sell them during these discounts ?
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it is probably not a default risk in the historical sense, but rather the refinancing risk. keep in mine that ratings are worth squat – so your basis for risk assessment is flawed. judge your outlook and cash flow projections, not ratings. for example, GE is AAA and by the skin of its teeth barely avoided a refinancing crisis as it received the FDIC guarantee for debt it must refi.
Could be a good deal, but do your own homework, not rating agency b.s.