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Infamous ‘No-Coupon-At-All’ Club May Soon Welcome Another Member

  • Hertz has warned creditors it could soon declare bankruptcy
  • Company may default before first payment on $900 million bond
    
Photographer: David Paul Morris/Bloomberg

It’s one of the bond market’s most dubious honors, a mark of shame that among even the very worst deals in history, few carry.

Dubbed ‘no-coupon-at-all,’ it’s reserved to describe securities that default before making a single payout. The distinction is so rare that it’s generated a cult-like following among traders, who recall just a handful of transactions in recent decades that fit the bill.