Bond Markets Pricing: RJR Nabisco and KKR Question: RJR Nabisco and the KKR LBO "fiasco". Call me stupid but I know that bond value here dropped 17% but why the big deal? Assuming I do not have to sell, and the company isnt facing insolvency, what is the problem? I suppose it is like negative equity in real estate. It is only a problem if I need to sell, otherwsie I wait until the market has recovered. And in the bond markets, the coupon value is still being paid out until maturity , so why the beef? Your Thoughts? Weigh In Now ... |
