Curious to see how the credit markets are responding to the disclosure re: bankruptcy and difficulty in paying down revolver. Maybe there's still enough asset coverage to cover the bonds. I don't know.
Insurance regulations stipulate that the cash and investments belong to the policyholders and claimants first, after which the bond holders come to the trough.
According to today's release, SinkHole has $2,625M of cash and investments against $2,552M of loss reserve liabilities. Analysts will tell you that this is not enough coverage. Then there is the $998.6M unearned premium reserve liability that, in theory, is returnable to the policyholder should the policy be cancelled midterm. What covers that liability. Forget the $451M debt.