Next, the High-Yield Stress Test

Every now and then the general public gets a chance to see just how valid the green shoots theory really is. Next Friday may prove to be just such a case. On that date, 20 of some of the gnarliest and most troubled stressed and distressed high yield credits have a simultaneous IOU due to their respective lenders, either in the form of an interest payment or outright maturity. Zero Hedge has compiled the list of the 20 most interesting suspects to watch carefully.

At the end of the day, fund flows talk and TV propaganda walks (and both have a 30 day grace period). (Click chart to enlarge.)

Comments

[Moon Kil Woong:]

Considering we are already at the 8.9% unemployment level of the stress test I agree fully with you Tyler that the next stress test will be played out not as a theoretical scenario but in the real world.

And we all know how poorly the Treasury and Fed acts in real time. They tend to give away the farm.

May 09 12:51 AM

[Fighting Yoda:]

Dude what are you ranting about? Get a life.


On May 09 02:51 AM WHO KILLED WIM DUISENBERG??? wrote:

> Pigs, jews, Americans and pedophiles (95% of SA) are not allowed
> to enter website. Those that will click will be hanged in the public
> park in the city center.
> Please obey the Law!
>
>
> High potential eco - junkie. Good blowjob.

May 09 04:08 AM

[Harry Tuttle:]

Our government is under the illusion that either they can save everyone or that "their banks" will. I could be wrong, but I do not think that is possible.

May 09 09:09 AM

[Ranger:]

Are you ever right about anything?

May 09 10:54 AM

[Timmothy Posey:]

Dean Foods has already raised a secondary offering (common) to pay for that $196 million bond. So you can essentially scratch them off that list. As for the rest, they will most like just roll debt forward or issue common to pay for the coupons.

I don't think we're "there" yet as far as seeing real world stress test on high yields. The credit markets are "open" however everybody is currently trying to tap the credit/capital markets and that includes the gov't. We will most likely see very high yields in the near future.

May 09 01:11 PM

[donzelion:]

I keep forgetting RH Donnelly still exists. Can anyone believe they were once a near-blue chip? (See seekingalpha.com/artic...) Maybe all those Kindle buyers will dish out for the joys of reading yellow pages on electronic ink.

Six Flags - what a company! Hasn't turned a profit in 11 years, booted of NYSE, market cap now at $36 million - but they award a $3 million "success fee" to the CEO. I just don't get it.

May 09 03:53 PM

[capt Brian:]

Absolutely love this article. So very rare we have a nice steady rock to stand on. I don't really care what the news is, as long as it is true, and I don't think I have heard a truth for a long time.

Thank you

Capt Brian,

Clearing the charts

May 10 01:56 PM

[GoRAD!:]

RAD has been rallying as of late. What are the chances of them being inflated right out of their debt and their stock rising

May 17 01:30 PM