Could Refis Also Help Home Builders? (Hovnanian)

``if bondholders don't think the collateral that Hovnanian is offering up to back the sale of these new notes -- in this case $130 million in cash and $50 million in equity interest in Hovnanian's joint ventures -- is safe enough, they might not go for the deal... After Hovnanian announced its plans to refinance the notes, Fitch published a research note saying that the move was likely to lead to a downgrade for the builder.'' -- It's beyond us why this turkey didn't implode years ago. Oh yeah, maybe it would have something to do with ludicrous retroactive tax breaks.