Saks Bonds Worth Just 1 Cent Hand Hedge Funds a Painful Lesson
Photographer: Scott Olson/Getty Images
At first glance, Saks looked like exactly the kind of mess hedge funds love.
Just months after the company borrowed $2.2 billion to finance its takeover of rival Neiman Marcus, the newly formed luxury retail powerhouse was already running short on cash. Creditors spooked by the pace of the slide rushed for the exits, offering the bonds for less than 40 cents on the dollar.