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It's a difficult situation because a lot of these bonds have been resold at a steep discount. Someone who paid ten cents on the dollar for a bond has much diff
by smackfu 12y ago
It's a difficult situation because a lot of these bonds have been resold at a steep discount. Someone who paid ten cents on the dollar for a bond has much different financial incentives than I may have as an original buyer... should the fact that there are more of them mean they can screw me over?
- rahimnathwani 12y agoWhy should the price I paid for the bond give me different incentives? It's only the future cash flows scenarios which are relevant to my decision-making. What I paid is a sunk cost, and doesn't affect my possible actions or payoffs in the future. (I'm assuming that I wasn't bankrupted due to the price I paid, and that I am a professional investor rather than an emotional gambler)
- estebank 12y agoWell, not passing judgement for or against, but these holdouts _also_ bought the bonds at less than face value.