INITIAL BANKRUPTY OFFERING ( IBO). WHAT WILL WALL ST. THINK UP NEXT?
On Monday, when the market hit its absolute blow off top phase and Robinhooders sent the stock of bankrupt Hertz as high as $6.25, resulting in a market cap of just under $900 million – a testament to the absolute idiocy of capital markets – we decided to double down on this idiocy and said that “we hope the company sells a few hundred million worth of stock – after all there is apparently endless demand for its shares – just so we can test the so-called “price discovery” of Fed chair Powell’s latest and greatest FOMO [ Fear of Missing Out] bubble.”
Well, it turns out that some banker at Jefferies read us, and ignoring the clear sarcasm of this proposal decided to turn it into what may soon be the most insane and/or stunning, maybe even legendary capital markets product ever proposed: an Initial Bankruptcy Offering.