Betting against your own team
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If you're a Knicks fan like me, you're all-in on Tom Thibodeau—but what if Thibs were secretly allowed to place bets on the Celtics to win? Would you still trust him to call the plays?
That's what "Windstream Net Short" terms try to prevent. 🏀
Our Q1 '25 data reveals a dramatic comeback story:
- Net short protections vanished completely in Q3 '24
- These protections are now in 8% of credit deals
The stakes? Billions. When Aurelius Capital triggered defaults on Windstream's debt in 2019 while holding credit default swap positions that profited from the company's failure, it sent shockwaves through credit markets.
Most alarming? Despite this cautionary tale, 92% of deals still lack protection against creditors who win when debtors lose.
Issuers, check your bench: are your coaches also holding betting slips? Also, go Knicks. 🔵 🟠
Download Noetica's complete Q1 '25 Capital Markets Radar report for more.
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