(Bloomberg) -- Tribune Co. has an almost 50-50
chance of missing interest payments on some of the $13 billion
in debt it will have after real estate investor Sam Zell buys
the company, trading in the company's credit-default swaps
shows.
Prices of the swaps, financial contracts used to speculate
on a company' ability to repay debt, have jumped $309,000 since
the first step in the sale was completed in May. It costs
$748,000 to protect $10 million of Tribune bonds for five years,
according to CMA Datavision, indicating a 49 percent risk of
default. That's up from 32 percent on May 24, based on a
JPMorgan Chase & Co. pricing model.
Read more at Bloomberg Bonds News
chance of missing interest payments on some of the $13 billion
in debt it will have after real estate investor Sam Zell buys
the company, trading in the company's credit-default swaps
shows.
Prices of the swaps, financial contracts used to speculate
on a company' ability to repay debt, have jumped $309,000 since
the first step in the sale was completed in May. It costs
$748,000 to protect $10 million of Tribune bonds for five years,
according to CMA Datavision, indicating a 49 percent risk of
default. That's up from 32 percent on May 24, based on a
JPMorgan Chase & Co. pricing model.
Read more at Bloomberg Bonds News
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