RE:RE:BondsFrozenInOntario wrote: Thanks for this.
With rising interest rates, one would have expected the bond price to go down etceris paribus. Yet, the 81/2 are trading around the same level as the latest buy back and the 10 3/4 way higher. One could assume that the Sherritt bond risk is perceived as lower by the market. Can only be a positive
Regards,
Bonds are rated according to the probability of financial distress over the next 24 months given the situation that exists now.
If nickel takes a nosedive you'll see these bonds back to 50.
Things can change overnight. I've held bonds trading at 80 only to see them suddenly drop to a dime in a matter of days if a company discloses info that they may not be able to meet thier obligations. Not predicting anything about sherritt but I've seen these things happen