Intrum - comment

Intrum have appointed Houlihan and Milbank to “evaluate improvements of its debt capital structure”. Perhaps we are wrong to assume the 24s (never mind the 25s) get paid down? Shares are tanking. Bonds too. Having argued that management should soldier on here, we find the appointment early and are admittedly surprised to have it now. Our share short has dropped to 1.5% of NAV already and we are not sure we can easily reset it to 2%. Meanwhile, the 2% long in the 28s is suffering in equal measure today and has arrived inside fundamental value with a 9.25% coupon (for as long as that gets paid now).