as much of a stretch as it might be, what do the financials need to look like before cts have a chance of some recovery?
thanks
Briefly...
Assets must = liabilites for CTs to be paid in full (not talking into account trustee/admin fees/cost/etc)
Since Sub bonds are at bottom of the food chain (excluding equity), and assuming sub bonds represent 10 billion (plus interest), then subtract 10 billion from assets side.
Example for simplicity:
A = 90 L = 100
Any increase on A that is above 90 will be distributed to sub bonds and indirectly to CTs.