First Data Bonds Soar on Junk Exit

The video discusses a $22 billion payment processing deal involving First Data, which is expected to improve its credit status from junk to investment grade. Lisa Brown Woods provides insights into the deal's implications, highlighting First Data's history of leveraged buyouts and significant debt. The market has reacted positively, with bond prices surging and credit default swap costs plummeting. The combined company is anticipated to refinance First Data's debt, potentially benefiting the US high yield bond market.

What was the initial market reaction to the $22 billion payment processing deal?

• No change in First Data bonds

• A fall in Fiserv stocks

• A rise in First Data bonds

• A decline in First Data bonds

What was a significant financial aspect of First Data before the deal?

• It was a new company

• It had over $17 billion in debt

• It was debt-free

• It had no debt

What is expected to happen to First Data's debt after the deal?

• It will be written off

• It will be refinanced as investment grade

• It will remain as junk

• It will double

How did the bond prices react to the announcement of the deal?

• They plummeted

• They remained stable

• They decreased slightly

• They surged to high levels

What potential impact does the deal have on the US high yield bond market?

• It has no impact

• It could be a negative sign

• It will cause instability

• It could be a positive sign