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Selling bonds backed by collateral

So this article ( https://www.bloomberg.com/news/articles/2020-05-09/when-united-pawned-old-jets-bond-traders-sent-a-stark-warning) talks about several companies offering collateral for bond buyers.

Have a few questions about thiS. Does this mean they are jumping the other debt holders of the company in seniority to get access to these assets?

my understanding is that when a company goes bankrupt, debt holders being the most senior will get access to the assets. So wouldn’t the debt holders before this new round already have claim to these assets? I’m sure I’m missing something. Just curious what it is.

thanks for any help.

hi @JOECAN8878,

Not sure I understand the question. The various loans could be structured differently. So, if prior bond buyers hold non-collateralized loans then their contract doesn't give them senior access to those assets whereas later bond sales could be structured differently and give those bond holders access to assets.

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