Posted on 03/02/2009 6:20:18 PM PST by TigerLikesRooster
Casinos, media join autos on way to bankruptcy
Bonds selling for dimes on the dollar show investors are expecting the worst
By Deborah Levine, MarketWatch
Last update: 5:43 p.m. EST March 2, 2009
NEW YORK (MarketWatch) -- The bond market is doing the equivalent of a death watch on several well-known companies, signaling the U.S. economy could be in for more pain as struggling firms renege on loan payments and possibly file for bankruptcy.
Bonds of General Motors Corp. (GM) and auto supplier Visteon Corp. (VC) ; retailer Michaels Stores and theme-park operator Six Flags Inc. (SIX) ; media firm Univision; and leveraged buyouts Rite Aid Corp. (RAD) and Station Casinos all are trading for under 25 cents on the dollar. Death watch Bond prices for these companies indicate investors anticipate they may default
That means bond holders anticipate these companies may not be able to keep up payments on their debt. Investors are only willing to hold the bonds at a deep discount to face value of 100 cents of the dollar.
"A lot of companies trading below a certain level are the walking wounded," said Kingman Penniman, president of junk bond specialist KDP Investment Advisors. "We're really concerned about defaults."
(Excerpt) Read more at marketwatch.com ...
Company Industry Bond prices on $1 (Maturity/coupon) General Motors Auto $0.14 (2033/8.375%) Ford Auto $0.19 (2031/7.45%) Visteon Auto $0.05 (2014/7%) American Axle Auto $0.16 (2017/7.875%) ArvinMeritor Auto $0.23 (2015/8.125%) Six Flags Entertainment $0.18 (2014/9.625%) Station Casinos Entertainment $0.05 (2014/6.5%) Univision Media $0.09 (2015/9.97%) Dex Media Media $0.07 (2013/9%) Michaels Retail $0.24 (2016/11.37%) Rite Aid Retail $0.24 (2015/8.625%) Data: KDP Investment Advisors
Ping!
Not
When do they start asking “O” at every interview to apologize or discuss his regrets?
I feel the same way about Univision. Too bad about Michael’s though. It has been a fave of the women in my life. Rite Aid, I buy my beer from and 6 flags..sheesh, its like a zombie. Ever since 2006, I’ve heard rumblings about it closing down in Socal but it’s still there and they’re hiring for the summer.
Six Flags has been a house of cards for years.
Station Casinos is being bought out by Boyd Gaming.
yitbos
Dow 3000 anybody??
who would buy GM bonds?? You have to stand in line behind the feds if they failed and you ain’t getting squat. Nobody but govt will lend them a dime now.
For your listening enjoyment:
I prefer the ConservativeCave
Six Flags in Arlington TX will now sell beer. Watch the Baptists stop going and revenue drop.
somewhere around 3,000 I guess
Wonderful, so it gets even lower rent and more ghetto. Great place to take the kids /sarc
remember when buyouts caused prices to surge?
when Irving went wet, the shopping carts and beggars were first spotted within a week.
wonderful.
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