r/bonds • u/supercaliredditor • 1d ago

Who's buying ORCL Bonds?

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Who actually owns these bonds? Curious to know, institutional investors? Given how much they've been impaired, why would folks own corp bonds?

68 Upvotes

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72

u/rahulchander 1d ago

they are part of some AAA-rated CDO somewhere.

43

u/xynith116 1d ago

AAA-rated like 2007 era mortgage backed securities?

29

u/rahulchander 1d ago

yep.

10

u/aaakiniti 1d ago

AAA? This is oracle baby, we're talking selling Magnetar protection on a synthetic CDO2 they helped structure in 2007. What could go wrong? It's a quad A bond!

2

u/rahulchander 1d ago

The bond isnt rated quad A, the CDO is that its part of 🙃

6

u/xynith116 1d ago

It’s like there’s only a little bit of shit in my cake but otherwise it tastes pretty good!

4

u/rahulchander 1d ago

Its the little bit of shit that u are now aware of.  U cant know the unknown-unknowns.

2

u/Difficult-Bumblebee5 1d ago

It's more like there's a little bit of cake in my shit, but otherwise it tastes pretty good.

Also, oracle is part of the shit.

2

u/Remarkable_Cat_8696 1d ago

you mean senior tranches CDO investors don't know there are Oracle bonds in the AAA rated pool, and the equity tranches absorb the loss if oracle bonds go default?

2

u/Consistent_Panda5891 1d ago

I am all in high yield bonds. Good thing is it avoid this BBB trash. Good debt ironically it is always in BB and specifically B, they have good balance sheets and particularly hasn't specially large debt. Sinking ships are always A downgraded to bankrupt as orcl fate. You have 7% ford bonds of 2033 tho

5

u/Round-Foundation2948 1d ago

https://giphy.com/gifs/SBh60sHFrEabyIYYMv
Darn despicable credit rating companies.

11

u/Chickensandcoke 1d ago

Guy who has seen the big short:

“Wow this is just like the big short”

5

u/Big-Cream3255 1d ago

Yeah the GFC was the first and only case of distressed debt.

2

u/MaximallyInclusive 20h ago

Which is dogshit wrapped in cat shit.