wework debt: The amount of a company's bonds that are being borrowed at any one time is considered a proxy for investors taking shortpositions, which are bets that the company's fortunes will deteriorate, according to The Guardian. The cost lenders were charging to borrow the bonds also surged to record levels, indicating a clamour among speculators to obtain WeWork debt to take a short position on it. About 10% of WeWork's bonds, worth 67m 60m in total, were out on loan as of Tuesday, according to financial data firm IHS Markit. At the same time, the cost of buying the bonds outright fell below 85 cents on the dollar, compared with nearly 1.05 90p in mid-August when the company filed its intention to float. WeWork's co-founder, Adam Neumann, was ousted as chief executive last week, amid investor concern over his behaviour, spending appetite and level of control he wielded over the company, WeWork's cancelled IPO was prompted by doubts from investors, including Japanese investment fund Soft Bank, which expressed doubts about its sky-high valuation. The decline in the market value of its bonds indicated falling confidence in the company's ability to repay debts.
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Tagged under wework debt, bonds topics.