Seen on the Gerson Lehrman website regarding Korean bonds:
The issuer and its arrangers (Citigroup and HSBC) have incorrectly touted this deal as a “Covered Bond”. This is in line with the financial PR used in using the same name for Shinsei Bank’s issue from Tokyo. In both cases, we are dealing with troubled banks whose cashflows are weakening almost as fast as their balance sheet. The quality of the collateral provided is also highly suspect. At almost 240% over-collateralization, the issuer has clearly shown that it is a junk bin, not the single-A it claims, much less the AA-credit this note advertizes
Decide for yourself as you read the full article here
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