AIG et al. v Sears

Sears was one of the first companies to securitize its credit card receivables. In this dispute with its bond holders, Cambridge Finance Partners was asked to analyze the pricing and market response of all of Sears’ bonds including general obligation bonds, those secured by credit card receivables and those involving a provision that allowed Sears to call its bonds in the event of a large decline in receivables. A central component to this study was explaining the purpose, structure and pricing of Sears’ asset backed securities and those possessing the call provision.