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  "docSlug": "377026890e4d",
  "documentTitle": "B. Riley Financial, Inc. (RILY)",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-02-08 00:00:00",
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  "notes": "The slide argues that retail investors are being sold risky, unsecured debt by the company's own financial advisers.",
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      "text": "According to Bloomberg, only 25.52% of these bonds are owned by institutional investors, implying the remaining 74.48% of this debt is owned by retail investors who are highly unlikely to understand the risk they are taking when investing in these securities.",
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      "text": "Institutional Ownership %: 25.53%",
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      "text": "We can't help but wonder how many of these baby bonds are owned by clients of B. Riley's wealth management and financial advisory divisions on the advice of RILY's own financial advisers.",
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      "text": "What the salesman likely won't tell you is that RILY's Baby Bonds have almost none of the protections afforded to the company's other creditors. They're unsecured, extremely \"cov-lite,\" (lacking the same covenant protections that most bondholders have) and essentially sit right on top of the equity at the bottom of the capital structure.",
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      "text": "The coupon rate on RILY's seven issues of baby bonds ranges from 5% to 6.75%, which we believe to be far too low to compensate investors for the existential risk that accompanies these securities. According to Bloomberg, only 25.52% of these bonds are owned by institutional investors, implying the remaining 74.48% of this debt is owned by retail investors who are highly unlikely to understand the risk they are taking when investing in these securities.",
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      "text": "RILY Baby Bonds table showing ticker, maturity, rate, amount outstanding, and institutional ownership.",
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