Loan CDS recovery rates hit new low with Ferretti

26 Feb 2009

First lien LCDS contracts on Ferretti, the Italian luxury yacht maker, settled at 10.875% in the auction today to determine their recovery value, leaving protection sellers having to pay 89.125% of the notional amount.

The Ferretti auction is the third to be held on a LevX index constituent since its inception and Ferretti’s recovery rate is the lowest seen so far for first lien debt. Sanitec, the Finnish maker of bathroom products, scored a recovery rate of 33.5% for the first lien ...

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