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

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TAGS: Law suits

Comment by: Anonymous. Posted 2 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 2 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?