Wework, Wecrash

From ZeroHedge:

Just days later it began trading, WeWork's freshly minted $702 i chiliad one thousand bond outcome is crashing equally the massively over-subscribed junk bond issue sees dramatic buyer's remorse...

The high yield bond sold for par end calendar week in addition to is straightaway trading amongst a 95 handle, which, equally Bloomberg reports, stands inward abrupt contrast to the outsized orders the companionship saw when it marketed its debt inward main markets end week.

The companionship had initially sought to outcome $500 i chiliad one thousand of the securities, only decided to upsize in i trial the orders came pouring in, a soul amongst noesis of the province of affairs said. The seemingly odd-lot number of $702 i chiliad one thousand was chosen inward percentage because the companionship considered it a lucky number, roughly other soul said.

WeWork’s bargain underscored the risks investors own got been willing to own got inward the new-issue marketplace position equally they combat to detect high-yielding assets. The office-space leasing companionship joined a moving ridge of high-flying cash-burning firms that own got managed to latterly tap debt markets, similar Uber Technologies Inc. in addition to Netflix Inc.

The bond was the most active in the USA high-yield marketplace position on Monday, Trace information show....

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Recently: The FT Alphaville posts embedded inward "The WeWork Chronicles (you won't believe #3)".