Mr Cooper Group Inc (COOP)

[marayatano]

The underlying security of the hybrid H's are junior sub bonds which carry a subornation clause that they must make seniors whole.

Right now seniors are accruing contract interest while the BK estate is providing federal judgment interest. This Opinion does not make seniors whole so the difference is made up by H's recovery.

That is why everyday the H's continue to bleed lower and lower until zero. Once it hits zero, they are not gonna get any part of the reorganized debtor nor issued any other new security.

... unless... an event stops the bleeding (interest), but the make whole clause is still there...

imo