OTCPK:APCFF - Post by User
Comment by
Methodon May 04, 2019 11:09am
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Post# 29710584
RE:RE:RE:RE:Up 7%.............what gives?
RE:RE:RE:RE:Up 7%.............what gives?Well the yield on the A’s is the highest which is nice but it’s also fixed. The B’s are rare reset and the C’s are floaters. The B’s are inter convertible with the C’s every five years and reset next in December. Based on the current 5 year, they will reset about the same yield.
If you think interest rates are going higher then the Bs and Cs might be more attractive. If you think rates are flat or going lower then the A’s are better.
If you think credit spreads will tighten, then the A’s have more upside.
if you think ATP, could be bought out and we could get a par redemption then the A’s have more upside.
It really depends on your macro view on interest rates and your micro view on credit spreads and take out possibilities.