How do people know where debt is "trading at"

When someone says e.g. UnitedHealth's (UNH) senior debt is trading at 60 on the dollar where do they get the 60 from? Is there a way I can find that without bloomberg - such as a yahoo fin/google fin?

Comments (2)

Most Helpful
  • Teller in IA
Nov 23, 2022 - 1:49am

I don't think corporate bond interest rates are widely available, but in the context of an interview problem or something, let's say a company is restructuring and has assets of 300 w/ 200 of first lien debt and 200 of second lien debt. In the event of a liquidation, the first lien debt would receive all 200 back, so it's trading at par. The second lien debt would only receive 100/200 of their claim, thus meaning it trades at 50 cents on the dollar. 

Nov 23, 2022 - 3:40am
HanaiChicken, what's your opinion? Comment below:

Quis omnis rerum illum quisquam temporibus voluptas beatae modi. Impedit eius omnis culpa. Totam optio quasi sit repellendus corrupti.

Start Discussion

Career Advancement Opportunities

November 2022 Investment Banking

  • Jefferies & Company (▲08) 99.6%
  • Lincoln International (= =) 99.3%
  • Financial Technology Partners (+ +) 98.9%
  • Evercore (▽01) 98.5%
  • Bank of America Merrill Lynch (▲01) 98.1%

Overall Employee Satisfaction

November 2022 Investment Banking

  • PJT Partners (= =) 99.6%
  • Evercore (▲02) 99.3%
  • Greenhill (▲05) 98.9%
  • Canaccord Genuity (▲15) 98.5%
  • William Blair (= =) 98.1%

Professional Growth Opportunities

November 2022 Investment Banking

  • PwC Corporate Finance (▲14) 99.6%
  • Lincoln International (▲03) 99.3%
  • Jefferies & Company (▲04) 98.9%
  • William Blair (▽02) 98.5%
  • Evercore (▽01) 98.2%

Total Avg Compensation

November 2022 Investment Banking

  • Director/MD (10) $613
  • Vice President (38) $392
  • Associates (219) $256
  • 2nd Year Analyst (139) $163
  • 3rd+ Year Analyst (19) $160
  • 1st Year Analyst (464) $153
  • Intern/Summer Associate (88) $151
  • Intern/Summer Analyst (336) $92