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azlyrics | 3 years ago

checkout the citrix bond situation. unable to raise targeted goal through issuing corporate yields. its really scary we are seeing corporate bond yields spiking and liquidity drying up.

if a legitimate large corporation is having trouble raising money, its a huge red flag.

discuss

order

fny|3 years ago

Citrix in bond trouble? Time to start buying corporate bonds. Edit: Yup, Apollo and Elliott bought in huge.

Wow, debt looks super attractive.

djbusby|3 years ago

Can you two (@azlyrics, @fny) expand on this - or point to a topical article?

When I first saw this @azlyrics comment was dead and I'm wondering what the fuzz is.

snake_doc|3 years ago

It’s definitely a buyout specific problem; deals that were inked before the Fed’s rate increases have pretty unattractive terms compared to the current market conditions. There’s a supply glut of buyout debt at those terms, underwriting banks are the ones holding the bag.

azlyrics|3 years ago

the thing is this corporate bond liquidity issue is not new. first alarms were raised in 2019, then they printed money like crazy in 2020, and now they are tightening and we are seeing bond liquidity meltingdown.

theres a very real chance that 10% yield will spike further and downgraded