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In other words, they're not backed by any underlying assets or collateral. However, as with other debt instruments, baby bonds are senior to a company's preferred shares and common stock and are paid before preferred and common shareholders in the event of a default.
KKR took a stockexchange company called who Houdaille, private, and it was the first time there’ve been — RITHOLTZ: ’79 or something like that? And if they don’t need a loan, we can lease them their own building back in a net lease, and have both the credit of the company and the real estate as collateral.
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