Stab in the dark
Feathers are ruffled in corporate bond land. The seven year tranche of Vivendi’s two part bond in late November had a bit of a mare in the aftermarket, trading up to 40bp wider at one point. The bookrunners bought back about €15m of bonds to stabilise it and it returned to reoffer within a few days.
Fair enough Vivendi got its money when it needed it and investors are no worse off, unless they panicked and sold in the early stages, which would have been silly.
But how to share the costs of stabilisation? The deal had five active bookrunners, BNP Paribas, Deutsche Bank,
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