Because the yield is so high buying back such bonds is actually beneficial for the borrower(PEL). You get 1000 from a loan and you buy it from someone at 750(hypothetically) so net net you saved 250.
Its actually P&L accretive in the short term, in the medium term if they have to raise capital from the markets then the markets would price their new Bonds at much higher yields than the DHFL bonds because of ongoing higher Interest rates and Risk pricing PEL’s past history.
When buying DHFL from lenders they had the upper hand since the lenders were happy to get anything for their capital lent to DHFL asap.
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