|Bid||0.00 x 34100|
|Ask||0.00 x 40000|
|Day's range||1.81 - 1.89|
|52-week range||1.65 - 3.41|
|PE ratio (TTM)||N/A|
|Earnings date||5 Sep 2018 - 10 Sep 2018|
|Forward dividend & yield||N/A (N/A)|
|1y target est||1.52|
The dust is settling from a nasty hedge fund battle over credit-default swaps, enough that observers can now figure out who eked out a profit. The background: GSO Capital Partners, the credit hedge fund within Blackstone Group (BX), bought CDS tied to the debt of home builder Hovnanian Enterprises (HOV). The price of the cheapest outstanding bond set the price for the CDS, which GSO controlled by building supercheap debt. Solus Alternative Asset Management held the opposite position in CDS, and so would have had to pay up, should the CDS be triggered.
One weird thing about the U.S. financial system—and most modern financial systems—is that it is basically impossible to hold cash electronically. You can put your dollars in a bank account, but the bank could go bust.
Two hedge funds made a mess in a corner of the credit market. Firms including BlueMountain Capital, Citadel, Apollo Global Management, Elliott Management, Anchorage Capital Partners, and CQS have been holed up in Manhattan conference rooms and on calls for months, trying to fix credit-default-swap contracts, people close to the situation say. Maligned in the financial crisis, CDS are drawing scrutiny again.
The Red Bank, New Jersey-based company said it had a loss of 7 cents per share. The homebuilder posted revenue of $502.5 million in the period. The company's shares closed at $2.01. A year ago, they were ...
Yesterday the Federal Reserve issued some fairly small proposed revisions to the Volcker Rule, which I guess we have to talk about. Here is an overview from Bloomberg’s Yalman Onaran, with the title “Why Wall Street Traders Aren’t Rejoicing (Yet) Over Volcker Rule.” The revisions tinker with the Volcker Rule’s requirements—removing a presumption that securities held for less than 60 days are held for “proprietary trading,” making it easier for banks to demonstrate that their market-making desks hold only enough inventory to meet “reasonaby expected near-term demand” from customers, etc.—to make compliance simpler, but don’t really change the basic structure of its prohibition on proprietary trading at banks. The standard criticism of easing the Volcker Rule is that it will allow banks to take more risks.
Leading Hovnanian Enterprises Inc (NYSE:HOV) as the CEO, Ara Hovnanian took the company to a valuation of US$275.12M. Understanding how CEOs are incentivised to run and grow their company isRead More...
Inc. following an admonishment from U.S. regulators, ending a standoff with other investors that shook confidence in the multitrillion-dollar credit derivatives market. Blackstone’s GSO Capital Partners LP said Wednesday it was abandoning a complicated plan to collect payments from investors that wrote insurance-like contracts guaranteeing full payment on Hovnanian’s debts. GSO had bought these insurance instruments, known as credit default swaps, which pay out if Hovnanian were to default.
Hovnanian Enterprises Inc. made an overdue interest payment on $26 million of bonds, according to a company filing Wednesday, bringing an end to a fight among hedge funds over what amounted to a manufactured ...
Blackstone Group’s GSO Capital Partners and Solus Alternative Asset Management resolved a dispute over a financing plan for Hovnanian Enterprises Inc., ending an argument that had roiled the credit derivatives market. The fight stemmed from GSO’s agreement last year to lend money to the troubled homebuilder. As part of that deal, Hovnanian agreed to default on a chunk of its debt, a step that allowed GSO to profit from a separate credit derivatives trade.
Inc. recently made peace with Blackstone Group Inc. over a controversial credit derivatives trade, a gentlemen’s agreement of sorts that lets both sides avoid a public confrontation. The deal between Goldman and Blackstone’s GSO Capital Partners LP resolves a high-stakes standoff over credit default swaps tied to Hovnanian, which borrowed money from GSO last year under an unusual arrangement.
The Wall Street giants had taken opposite sides of a bet on bonds issued by home builder Hovnanian Enterprises Inc. The trades, engineered by Blackstone’s GSO Capital Partners LP, involved the home builder intentionally skipping a small interest payment earlier this month in exchange for an attractive financing package from the private-equity house. Blackstone had bought insurance against a default, which would allow it to make money from the skipped interest payment. It bought this insurance, through what are known as credit-default swaps, from Goldman and others.
Blackstone Group LP bought a portion of the credit-default swaps Goldman Sachs Group wrote on homebuilder Hovnanian. Bloomberg's Jason Kelly reports on "Bloomberg Daybreak: Americas." (Source: ...
Goldman Sachs Group Inc. and Blackstone Group LP recently resolved a monthslong standoff over a controversial derivatives trade that had alarmed regulators and investors in the $11 trillion credit-default swaps market. The Wall Street giants had taken opposite sides of a bet on bonds issued by home builder Hovnanian Enterprises Inc. The trades, engineered by Blackstone’s GSO Capital Partners LP, involved the home builder intentionally skipping a small interest payment earlier this month in exchange for an attractive financing package from the private-equity house. Blackstone had bought insurance against a default, which would allow it to make money from the skipped interest payment.
Has the Pope been following the Hovnanian Enterprises Inc. trade? The Vatican takes the long view, though, and there is no reason to expect it to react to financial developments in anything like real time.
Inc. creditors snubbed a bond exchange proposal that could have eased the home builder’s debt load at the expense of credit default swap sellers. New Jersey-based Hovnanian abandoned the proposed $50 million debt exchange after failing to get enough investors to participate. Under a controversial deal with GSO, Hovnanian skipped a $1 million interest payment May 1 on company-issued bonds it repurchased and parked with an affiliate.
How do you decide if an investment is socially responsible? Bonds are meant to be boring safe investments, and so in fact many bond investors outsource even the question “is this bond good?” to ratings agencies for a letter grade: AAA, good, C, not so good. Similarly it makes complete sense that if you would want to invest in socially responsible—or environmentally sound, or whatever—bonds, you would also want someone else to do the work of figuring out what that means and which bonds fit the requirements.
California regulators approve a plan to mandate solar panels on new homes in the state. Some argue it's an investment, while others say the move will only hurt low-income residents.
The Commodity Futures Trading Commission has recently issued a much-needed warning in response to possible manipulation of CDS trades by a couple of the biggest names on Wall Street.
Hovnanian skipped an interest payment due Tuesday on bonds it repurchased and parked with an affiliate, opening the door for GSO to collect payouts on credit-default swaps that insure against nonpayment. It will be up to an International Swaps and Derivatives Association committee whether the default triggers credit-default-swaps contracts tied to Hovnanian debt. The nonpayment was required of the home-building company under a sweetheart-lending deal with GSO featuring off-market debt designed to maximize the payday.
Canyon Partners head Josh Friedman said GSO Capital Partners went “beyond the bounds” of how deals should be done when it required a homebuilder to default on debt in order to gain new financing. The default could allow GSO to collect on side-bets that it had used to wager against Hovnanian’s debt, a series of a arrangements that were “a little unseemly," Friedman, Canyon’s chief executive officer, said during a Bloomberg TV interview with Erik Schatzker at the Milken Institute Global Conference. The side-trades were done using credit default swaps, a derivatives market that was designed in part to compensate investors if a company ended up unable to pay its obligations.
May.25 -- Blackstone Group LP bought a portion of the credit-default swaps Goldman Sachs Group wrote on homebuilder Hovnanian. Bloomberg's Jason Kelly reports on "Bloomberg Daybreak: Americas."
Apr.30 -- Canyon Partners Co-Chief Executive Officer Joshua Friedman discusses market conditions, banks, and his view of the GSO, Hovnanian deal with Bloomberg's Erik Schatzker. He speaks from the Milken Institute Global Conference on "Bloomberg Markets."