Short bets against WeWork's bonds jumped to a record high this week, sugges...
FILE PHOTO: A WeWork logo is seen at a WeWork office in San Francisco, California, U.S. September 30, 2019. REUTERS/Kate Munsch/File Photo
The cost to borrow WeWork’s high-yield debt was at its highest-ever on Tuesday, according to IHS Markit, with $67 million of bonds on loan, approximately 10% of the size of the total issue. Investors interested in shorting the company borrow the debt short-term with the expectation the price will fall.
The price of WeWork’s May 2025 7.875% junk bond 96208LAA9=has fallen sharply, down 18.6% in the last month to trade on Thursday at 83 cents on the dollar. Investors betting WeWork’s bond price will decline further may be expecting the company to issue a new bond soon.
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