CLO market braces for first default on maturity as Zohar talks collapse

By Mike Peterson

Patriarch Partners sues MBIA, admitting that it is unlikely to reach agreement to extend the maturity of Zohar I

Subscriber-only article

This article is available only to Creditflux subscribers and free trial users within 30 days of publication.

Already a subscriber? Not logged in? Click here to login.

If you have not already done so,
you may request a FREE TRIAL by clicking here

This trial will give you:
  • 4-weeks' free online access to our
    most recent subscriber-only articles
  • Daily breaking news alert sent by email
  • A print copy of Creditflux

If you currently have a free trial, you will see this message when you try to view articles older than 30 days.

TAGS: Law suits

Comment by: Anonymous. Posted 3 years ago [2015-11-08 14:44:01]

Agree with the comment below. The MBIA-wrapped bonds will not be in default. By subrogation, MBIA will have rights of a creditor of a defaulted entity, though, to recoup any payments it makes to the bondholders. Also, if there are unwrapped bonds elsewhere in the capital structure, such bonds will likely suffer (true) default.

Comment by: Anonymous. Posted 3 years ago [2015-11-06 14:46:42]

As long as MBIA stands up to its policy and pays principal when due, is there actually a default on this bond?