SunEdison May Have Experienced Margin Call Says CreditSights

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Mark Melin
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SunEdison

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…

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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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