June 2001
Triple-A deals unravel
There has been a spate of investment-grade companies getting
downgraded to junk, or even default status over the past 18 months,
but to see the triple-A-rated securitized bonds of what was an
investment-grade company at the start of 2000 hit the ropes is
something new and more shocking.
That, though, is precisely what has happened to the Heilig-Meyers
deal, and last month investors started to hear that they might be
lucky to even get back 50 cents on the dollar from the two triple-A
tranches - a $307 million fixed-rate and a $230 million
floating-rate note. Those who bought the rest of the $711.3 million
deal - an A1, an Aa3 and two Baa2 tranches - may even end up with
nothing at all. "For an old triple-A deal," says William Lloyd,
global head of ABS research at Barclays Capital, "it's looking
really ugly."
The problem dates back to August when...
This is archived content. Your current settings does not currently allow access to the archive. To gain access visit the subscription page or call our hotline on +44 (0)207 779 8999.
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
Level 1:
- Online access to the past 12 months content
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Level 2:
- Exclusive access to euromoney.com - Read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 2000
- 12 monthly issues of Euromoney magazine
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe