RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:More 12 months target for Baytex and others CDN stock To clarify, what I meant by retail line of thinking, was referencing the typical bonds that retail investors buy are more sensitive to interest-rate changes than corporate bonds. It's not that corporate bonds aren't affected, it's just that the interest rate changes are one part of the calculation, dwarfed by other factors such as corporate/bankruptcy risk.
So, for example, baytex negotiated debt at 7-9% interest rate when the overnight central bank interest rates were near zero. Most other O&G debt deals were similiar and remain similiar. If you went and got a mortgage back then, you could've got a variable rate for 2.4% or a five year fixed just above 3%.Corporate debt costs the companies a lot more, especially in oil and gas because of the risk.
Corporate bonds cost the companies, a lot more, especially in oil and gas because of the volatility.
Regardless, the point is moot, because BTE doesn't have any debt to restructure anytime soon.
Kelvin wrote: HeavyBanana, Retail line of thinking. OK. So you've analyzed their debt structure and have concluded that their exposure in a negative way to rising interest rates is low. Good! Pile in folks!