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Cherry Picking the Buyout - BoA, Countrywide



May 02, 2008 – Comments (1)

According to a Bloomberg article BoA indicates it may not honor Countrywide's debt with the buyout.

The bonds apparently were trading as low as 46c on the dollar before the buy out and have gone up to  90c prior to this news.

I don't understand how this stuff works, or how they can do a buyout and not take something that I would have thought had some priority in a buyout.

This goes through without the bonds and its ought to send the market spinning.  I say ought because the market is insane in how it responds. 

1 Comments – Post Your Own

#1) On May 02, 2008 at 9:01 AM, leohaas (30.08) wrote:

I think BoA is just trying to get out of the deal. If they succeed in doing that, preferably at relatively low cost (or even at any cost), then that would be the best news for BoA in a long time.

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