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 changes were anticipated for First Data's debt after the deal?

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What was the reaction of bond prices following the announcement of the deal?

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