The First Default; How Many More?: Credit Crunch
FICC Focus
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Triple C Subordinated Bonds
The majority of these are very viable businesses it just might have capital structures that have a triple C subordinated bonds and the majority of them have reasonable cash flows in a normal part of the cycle but we have to bother. The payoff is too enticing especially if you have long-term lending relationships with many of these triple C issuers over three or four cycles. "It's not really a rating thing for us it's do we trust this business," he says.
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