SunEdison may have triggered a collateral call on its $410 million margin loan, a report from CreditSights says, citing a decline in the financially-linked TerraForm Power Inc, which fell 36 percent in September and continued to slide, down 49 percent year to date. TerraForm is known as a “yieldco,” the spin-off of a related business venture. Subscription newsletter cites margin call, but bemoans lack of disclosure CreditSights has determined the potential cash collateral shortfall could be $315 million based on related correlation with TerraForm’s September ending price of $14.22 per share, but the report was less sure due to what…
SunEdison May Have Experienced Margin Call Says CreditSights
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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