Accounting epidemic claims latest victim in Ahold



The bond and credit default swap markets have reacted violently to news that Dutch retailer Ahold has overstated its earnings.

At opening on February 24, Ahold’s 2012 euro-denominated bonds were trading in the mid-90s. But after the company announced that it had overstated its Ebidta figures by $500 million in 2002, the bonds collapsed to end the day at around 63 cents in the euro. The following day investors looking to buy protection in the CDS market were forced to pay 37.5% (3,750bp) up f

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: