Or soon won't be,
rules the marketplace;
Insurance companies are cutting back on their coverage of Toys “R” Us
Inc. suppliers, bringing another headache to a retailer that has
suffered more than two years of losses, people familiar with the matter
said.
It could be a blue Christmas without
T"R"U;
The credit insurers are pulling back at the same time sentiment sours among investors in the retailer’s $5 billion of debt.
The upfront cost to protect against a default by Toys “R” Us climbed
to as high as 43.5 percent today, the highest level since October and up
from 30 percent at the end of June, according to credit-derivatives
data provider CMA. That means it would cost investors $4.35 million
initially, in addition to $500,000 annually, to protect $10 million of
the retailer’s obligations from default for five years.
Guess there isn't a Santa Claus after all.
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