Extendible SecuritiesAdvisoriesMarch 14, 2014 Posted by Melina Hadiwono, CFA Read More0 Comments
Given the relative newness of these securities, we are not convinced that a real secondary market for the debt exists. A strong supply and demand in the secondary market is necessary to create the kind of liquidity we want to see for investments in our client portfolios. Currently, we don’t see either. If an investor in an extendible security wants immediate liquidity, we see a real potential for principal loss.
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