Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Thanks, Ira, that's extremely helpful. I think it's worth clarifying a factual point. Did the issuer exercise a right to defer interest payment on the trust securities rather than to pay it currently as due in one or more periods, as permitted under the indenture, or did it simply default?

If it elected to capitalize per a permitted right exercisable under the terms of the instrument, the trust securities become subject to the OID rules; but if F. simply defaulted, that wouldn't change the way the holder accrues interest (and wouldn't let F. start accruing OID either).
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement