"This approach," Mr. Meyer wrote in a note to clients on Monday, "would allow the Fed to buy private assets that are now very illiquid and trading at distressed levels".
WALL STREET JOURNAL Jefferies Tries to Instill Calm | The chief executive of the Jefferies Group sought to assure investors that the brokerage firm would be fine, even as its debt traded at distressed levels, Bloomberg News reports.
With economic turnaround still elusive, default rates aren't expected to go anywhere but up–as are the number of companies with bonds trading at distressed levels.
"I don't think Verizon is looking for a big European asset, even at distressed levels," he said.
Among the reasons are tens of billions in corporate debt trading at distressed levels, and banks that remain reluctant to lend.
Currently, the company owes about $300 million, with a market capitalization at only $30 million and debt that trades at distressed levels.
The Dewey bonds, some of which matures next year, are trading at deeply distressed levels and are in an "apparent death spiral," according to a research note from CRT Capital Group last week.
The company's bonds are trading at deeply distressed levels that suggest a high likelihood of default.
The lesson, according to chairman and CEO Lloyd Blankfein Lloyd Blankfein, is to sell assets even at massively distressed levels.
With so many assets trading at such distressed levels, many expect the wholesale side of the industry to record massive gains when sentiment properly turns around.Regulators themselves wonder whether the measures now being discussed go far enough.
