Eksportfinans’s 7-Step Downgrade May Spur Structured Note Losses
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A seven-step cut in Eksportfinans ASA’s credit rating to junk by Moody’s Investors Service has sent its debt plunging and may force investors to take losses on structured notes that a month ago were rated one level below the highest grade.
“Some investors may have to liquidate the debt and will get clobbered trying to sell it now,” said Tom Balcom of Ibis Wealth Management in Boca Raton, Florida, who doesn’t own any securities from the agency.