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Tower Group International, L.Ş. Message Board

  • dumbandreallyslow dumbandreallyslow Nov 14, 2013 11:40 AM Flag

    Anyone have pricing for the bonds?

    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.

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    • Bonds sold today at 92.5, which is a 15% yield.

      92.5 500 15.006 11/14/2013 11:34:05 Customer Buy
      92.0 500 15.720 11/14/2013 11:26:00 Dealer to Dealer
      94.05 25 12.831 11/14/2013 10:06:37 Dealer to Dealer

      • 1 Reply to i_like_math_1
      • 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.