The unprofitable wireless broadband provider’s bonds have fallen 12 percent this month, the worst performer among junk- rated telecommunications companies in the U.S., Bank of America Merrill Lynch index data show. Its notes trade at an average yield of 15.2 percent, compared with 11.8 for CCC rated debt and 20.7 percent for CC, a grade that means a default is expected.
Tuesday, August 9, 2011
Clearwire Debt Indicates Distress
Bonds of Clearwire Corp. are approaching levels consistent with an impending default as partner Sprint Nextel Corp. strikes a capacity deal with competitor LightSquared, Bloomberg says. Standard & Poor’s says Clearwire will run out of cash in 2012.
The unprofitable wireless broadband provider’s bonds have fallen 12 percent this month, the worst performer among junk- rated telecommunications companies in the U.S., Bank of America Merrill Lynch index data show. Its notes trade at an average yield of 15.2 percent, compared with 11.8 for CCC rated debt and 20.7 percent for CC, a grade that means a default is expected.
The unprofitable wireless broadband provider’s bonds have fallen 12 percent this month, the worst performer among junk- rated telecommunications companies in the U.S., Bank of America Merrill Lynch index data show. Its notes trade at an average yield of 15.2 percent, compared with 11.8 for CCC rated debt and 20.7 percent for CC, a grade that means a default is expected.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
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