Cablecom Camouflage loan

Hedge funds aren’t just muscling in on the private equity business these days. They want a bigger slice of the corporate lending market too. Just look at an E800m-equivalent bond which the Swiss group Cablecom sold to investors last week – after a hedge fund came up with the idea for the deal. The company is using the bond to pay down a similar amount of bank loans. Yet the bond has been structured to resemble a bank loan in capital markets camouflage. It ranks pari passu with a remaining bank l...