Ninjastic
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Board Securities
Re: (GLBSE) TYGRR.BOND-P 4.85% weekly uninsured pass though bond to BTCST
by
totaleclipseofthebank
on 06/09/2012, 01:49:08 UTC
Quote from: MoPac on September 06, 2012, 01:44:00 AM
Quote from: totaleclipseofthebank on September 06, 2012, 01:41:31 AM


Think about this: Imagine the Greek govt used their current funds to buy back their own bonds for pennies on the dollar. They would have much less debt outstanding, right?


Right, and entities do indeed buy back their own debt at steep discounts when they see the opportunity. See http://www.investopedia.com/stock-analysis/2009/Four-Companies-Buying-Its-Own-Debt-XLNX-CIT-AMKR-AN0218.aspx#axzz25eLn0FJ4 .

Good find, but there is a difference between convertible bonds with a buyback clause (where the buyback conditions are explicitly described in the bond contract). Certain corporate bonds have conditions where the issuer can buy back on the secondary market, but I don't see TBP as one of these bonds as it is described in the contract.