It follows a cash-settlement auction for CDSs linked to RH Donnelley on June 11, which produced a recovery rate of just 4.875% for senior unsecured debt. The company and its subsidiaries filed for Chapter 11 bankruptcy on May 28.
Analysts at Morgan Stanley in New York said the results were broadly in line with market expectations. The wide disparity between recoveries on LCDSs and CDSs referencing the firm was reflective of low recovery rates on bonds since the beginning of the year, they added.
The week on Risk.net, March 10-16 2018Receive this by email