20 Jul CIT: Bellwether of the Macro-Economy
Posted at 17:09h
in Credit Spectrum
“Is the financial system stable enough yet to fix itself?” In a Fortune article exploring this question, R&R’s Sylvain Raynes sees the prospect of a CIT Group bankruptcy as a new beginning. “There is still value in CIT that can be picked out if the company files for bankruptcy,” says Raynes. “In that scenario, it should work the same as always. The shareholders get nothing, the bondholders are paid, but likely less than the value of their bonds, and then another firm buys the assets that are worth something and grows its business.”
Read the full article, “Can CIT end the bailout mentality?” by Kate Benner, Fortune, July 20, 2009.