RE:Strange relative prices?mrmoribund wrote: I suppose the argument for the debentures is that the scenarios where the stock does better than the debentures are all scenarios where the debentures do pretty well regardless.
Different risk profiles. If you look at pension funds, they are looking at investments with low downside risks and a good yield. If they can get extra upside, then even better.
The stock only needs one positive news to rebound and move to $3. The debentures will be more steady until the stock gets closer to $3.80. From $3.30+, the premium compared to par will start to grow.