junkbondinvestor
@junkbondinvest
Credit analyst. Focus on high yield bonds, leveraged loans, distressed debt, special situations.
Lots of satire. DMs open.
1.1K Following 50.6K Followers
Here's how a single basketball player gets funded by insurance premiums.
LeBron sets up an LLC. The LLC issues bonds backed by his non-basketball income (e.g., a lifetime Nike deal, licensing, etc).
Two life insurers, managed by Guggenheim, buy $300 million of the bonds. 2049 maturity. 4.8% coupon. Another $60 million follow-on in 2022.
Life insurers used to hold plain bonds matched to future claims. Now they hold this. Not saying it's bad risk/reward but this is the modern insurance balance sheet.
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BB corporate bonds: 173bps OAS.
BB CLO tranches: 782bps DM.
Both "BB" rated.
