No. of Recommendations: 1
MBIA is asking bond holders for consent to amend covenants, and they offering $10 per bond per consent. Meanwhile, BAC is trying to block that move and is tendering for MBIA‘s 5.7’s of ’34. The first linked article argues BAC will be successful. The pricing of the bond (the third link) argues they won’t be. Of late, BAC has been very aggressive about calling its bonds. Also, they’re been paying out huge fines for their past misdeeds. Possibly, there’s some money to be made trading the common or the bonds of either.

Standard Disclaimers: I’m long a bunch of MBIA’s debt, and I’m participating in the consent offer through one account, the tender offer through another, and just sitting tight in a third. In other words, I have no idea the best way to play this.
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