FTX debt trading price breaks through 50% of face value
According to a report by The Block, some FTX creditors’ claims have been valued at over-the-counter (OTC) valuations of more than 50% of face value. According to Thomas Braziel, a partner at 117 Partners, purchasing the claim will entitle the holder to any assets that FTX can recover after bankruptcy, and the purchase price exceeds "50% of the face value" means that the market currently expects the user's assets to be Restore at least half of it.
Thomas Braziel said one bond worth more than $20 million sold at Friday's auction for "52 cents on the dollar." However, Thomas Braziel added that currently only "the most valuable and least controversial claims" can achieve this price.
Anthropic financing drives debt prices higher
Since the news of AI company Anthropic’s financing was released, people’s confidence in the value of FTX’s debt has increased significantly. According to previous reports by Zombit, some lawyers believe that since SBF led Anthropic’s Series B financing in 2022 with an investment amount of up to US$580 million, this is a “good sign” for FTX’s creditors. The latest funding and a potential increase in the company’s valuation could bring a recovery rate of “100%” for FTX’s creditors.
In an X survey in January this year, most respondents expected that their debt would only recover by 25%, and according to transaction data in May this year, the trading price of FTX debt only fell between 20% and 28%. left and right levels.
You have money on ftx, how much do you expect to get back (ignoring timescale)
— loomdart – (FTX 2.0 Advocate) (@loomdart) January 21, 2023
But as the bankruptcy reorganization team recovers more and more funds, liquidates remaining assets, and news of Anthropic's financing, FTX claims have been trading at levels above 40%.
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