Replies to post #2760 on Washington Mutual WAHUQ Trust Prf (fka WAHUQ)

[Enterprising Investor]

Excess of par. No way to be certain how much.

Monetizing the notes makes a great deal of sense. A dollar today is worth more than one tomorrow. However, I think there is one sticking point. Imagine if the notes were marketable and distributed, holders would actually receive an additional benefit by capturing any excess through selling on their own or earning an above average rate by holding.

Under the current arrangement, the trust would receive the cash and pay holders only their claim amount. Any excess would flow to the trust to pay other claimants further down the waterfall.