Part XIII: Phoenix Coyotes - The Final Cut?
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10-13-2010, 12:28 AM
Join Date: May 2006
Originally Posted by
Umm... First the holders have to agree to sell, and some (ex: holders that own the bonds to defease a liability) will not be keen to give them up. Second, the market price for a bond reflects the sum of all future payments (admittedly discounted but with USTs at record lows, not going to discount much!)
Bottom line is the amount owed is not going to be significantly lower than the sum of the future payments.
Ummm, yeah, the price will be much lower than the sum of all the payments. Think Mortgage. And if there is a risk of default on the bonds or a downgrade because the Yotes leaves, the price of those bonds are going to drop like the Cubs in September. People will be begging to get rid of them.
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