TSX:LSG.DB - Post by User
Post by
HamSandwichon Jan 19, 2016 11:25pm
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Post# 24475150
Debentures
Debentures
Anybody own them? It looks like a nice asymetric bet on gold prices since we should be secure with debt repayment - they have cash on the books and are actively buying back 10% of the debt outstanding.
I guess the main issue is opportunity cost since the yield to maturity right now is ~ 3% which is a little less than a corporate bond.
Options market on GLD would imply the chances of 1250 USD gold within 2 years to be 40% and 15% for 1350 USD gold.
I guess the big question is what does a 1250-1350 USD gold price do to the stock price?