Corzine bonds

November 11, 2011

My colleague Glenn Okun points out the delicious irony in this clause in MF Global bonds:  the coupons were set to rise by 1% if Corzine left to (say) join the Obama administration.   Here’s an excerpt from a WSJ piece in early August:

“Call it the Corzine Premium.  Mr. Corzine’s current employer, MF Global Holdings Ltd., is promising to compensate investors who buy his company’s bonds with an interest-rate bump if the chief executive and former U.S. senator jumps ship for a government job. In essence, the securities deal assigns a value on the man filling the corner office: a one-percentage-point cherry atop the $300 million bond offering, or up to $15 million.”

And if that’s not enough Corzine for you, here’s Jon Stewart’s famous Daily Show piece.

Posted by David Backus

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