SHLD common

SHLD's seniors are yielding >13% and they have >$4B in junk. What's keeping the common up here? Someone tell me that there isn't a spread play against the common? Go easy as this isn't my market.

 

i think stock is unborrowable.

Also possible (my guess) that high operating leverage and common reflects high option value.

 

I hear swaps are trading. The CDS is absurd and implies armageddon.

 

EQ swaps, not referring to the CDS.

Just over 11% yearly to carry the synthetic short. Aha.

/endthread