tag:blogger.com,1999:blog-1527840491496268397.post3269682712544535706..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: WSJ: "The Man at the Center of Solar-Panel Maker Suntech's Fall" ($STP)Unknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-1527840491496268397.post-47502658006758046972013-05-15T13:17:01.865-07:002013-05-15T13:17:01.865-07:00It's true that volume has dried up recently, b...It's true that volume has dried up recently, but it was a lot higher a few weeks ago, when they were still trading around 30. Do you have any theories on why bondholders are willing to defer it again? Thanks for your input as always.Walterhttps://www.blogger.com/profile/04745318865555357144noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-41045534945367664692013-05-15T11:29:29.520-07:002013-05-15T11:29:29.520-07:00Bonds trade in piddling little amounts. I doubt yo...Bonds trade in piddling little amounts. I doubt you could do a $5mm order at this price. <br /><br />Also bankruptcy tends to make asset sales much simpler and easier.CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-83087682817746722272013-05-15T11:10:44.490-07:002013-05-15T11:10:44.490-07:00It just seems surprising to me that all the bond t...It just seems surprising to me that all the bond traders are overlooking STP guaranteeing over a billion dollars of bank loans. Bonds still trade so some people think they can make money buying it at 25, and I believe the majority of bond traders care about fundamentals, unlike stock traders.<br /><br />I'm guessing bankruptcy would complicate the GSF sale and that's why bondholders have been willing to defer it. Can't think of any other reason, surely they can't expect to get anything from Wuxi Suntech.Walterhttps://www.blogger.com/profile/04745318865555357144noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-72710005675911579152013-05-15T10:28:23.357-07:002013-05-15T10:28:23.357-07:00It's "downstream guarantees of domestic b...It's "downstream guarantees of domestic bank debt". I assume that means all of the Chinese bank loans to the subsidiaries but they aren't precise on describing this.<br /><br />It's always possible that the Chinese banks wouldn't enforce those guarantees I suppose. <br /><br />Either way, I don't see any reason to be optimistic about the GSF recovery. Remember, it's not like they weren't trying to sell it before the bonds matured. It's possible there's just no equity in it at all.CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-68771973971406661102013-05-15T10:10:07.317-07:002013-05-15T10:10:07.317-07:00This comment has been removed by the author.Walterhttps://www.blogger.com/profile/04745318865555357144noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-43382490749515410712013-05-15T10:09:55.081-07:002013-05-15T10:09:55.081-07:00This comment has been removed by the author.Walterhttps://www.blogger.com/profile/04745318865555357144noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-60788986682802097672013-05-15T10:09:46.857-07:002013-05-15T10:09:46.857-07:00The presentation says STP guaranteed $66m of bank ...The presentation says STP guaranteed $66m of bank loans and financial leases at subsidiaries. But then another item says "Downstream guarantees of bank loans" but not how much. Any idea what the difference between these two things are, and how much the second item is?Walterhttps://www.blogger.com/profile/04745318865555357144noreply@blogger.com