GREY:WFREF - Post by User
Comment by
wilwalon Aug 05, 2015 9:26am
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Post# 23990062
RE:RE:RE:RE:Debentures outperformed as usual
RE:RE:RE:RE:Debentures outperformed as usualExactly BC, you have a good handle on what the debs are all about. I've been paying about double that for commission which is irksome because the transaction is done exactly like a stock.
When they were trading down at $40, the simple yield on interest was 16%/year and the yield to maturity was almost 40% annually.
When they are trading at $60, the annual interest on your invested capital is still pretty impressive at 10.6% and yield to maturity of 23%/year. As long as the PP closes, default risk on the debs is much lower and the deb price should rise higher than what it is today.