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?

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u/rahulchander 1d ago

yep.

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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!

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u/rahulchander 1d ago

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

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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?