There have been nine health care bankruptcies thus far in 2017, but that doesn’t mean that bondholders are necessarily out of luck. In fact, a recent Moody’s report notes that bondholders can take a haircut when bankruptcy is not declared and remain whole even under bankruptcy conditions. Dallas County Schools provide a good example of this situation. [activistinvesting] Dallas County Schools lose $45 million and default on bonds, but don’t declare bankruptcy Gainesville, Texas and Dallas are separated by 71.7 miles. The drive is a 1 hour and 52 minute straight shot down I-35, but they are worlds apart in…
In Texas, A Study In Contrast On Bondholder Defaults
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
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