RE:Bonds hit all time record highs on 29's 10.75%VerificateASAP wrote: Do not say it too commoncents123 too loudly. What does it all mean? Who knows about the company health better than anyone else? The bond holders
the most sophisticated of all the stakeholders are these individuals
https://ibb.co/b5MfnS6
Yes bond holders are not equity monkeys who act mostly on sentiment and push stock prices way up or way down on fear or greed.
Bond holders are more calculated and rational. They want only two things...thier interest payments and thier principal back and they evaluate the risks VERY carefully.
But 84 and 71 are NOT indicators or a healthy company. They are indicators of a company that may be facing serious financial problems in the next 2cor 3 years....that's why bondholders want to be compensated with a very high interest payment to adress the risk.
I own lots of bonds. When the company is rock solid, there is little or no discount. Rogers sugar for example. I own thier bonds and they trade at 99 even though they only pay 5,%.
On the other hand I own IVQ. this company is a disaster and in serious risk of failure and thier bonds are trading at 80
So don't imply because sherritt bonds are at "all time highs", the company is high quality. If it was thier bonds would be in the high 90s