Originally Posted by Excargodog

And that Aug 8 opinion of Derek Kerr was the opinion of the consortium of those commercial banks that put together the Citrix deal when they put it together back in the Spring. They lost $600 million plus on the deal and the borrower still had to pay 10% on the deal. This isn’t about American in particular, it is about any company with junk-rated credit. Any loan coming due or bonds maturing - many of which were originally financed at 3-4% when the Fed was literally charging NO interest, are going to have to be completely paid off or refinanced at whatever rates are then current.

The most recent markers we have are the Citrix deal at 10% coupon and another deal that fell through because the borrower couldn’t afford an 11% coupon. That is the current baseline, it’s changed a lot in the last six weeks.