GME – No traded CDS, Base Case iCDS 215bps, Negative Case iCDS 1,100bps, 2023 10.000% Bond YTW of 9.979%, iYTW of 2.389%, B3 Rating from Moody’s, XO (equivalent to Baa3) Rating from Valens, Moderate Refinancing Need

November 13, 2020

  • Cash bond markets are grossly overstating credit risk with a cash bond YTW of 9.979% relative to an Intrinsic YTW of 2.389%. Furthermore, Moody’s is materially overstating the firm’s fundamental credit risk, with its B3 rating six notches lower than Valens’ XO (Baa3) rating.

  • Incentives Dictate Behavior™ analysis highlights management members are not well-compensated in a change-in-control scenario, limiting event risk for creditors