Chubbito, regarding the FMG bonds, are you talking about the 6-7% yield bonds issued in March that were 5 times oversubscribed? Sorry, I don't think that's an unusually high yield when you consider the rates available for deposits back in March that were basically guaranteed by the banks and carried zero risk. Then you have to consider overall debt market conditions, with what's been happening in the EU. Because the bonds were unsecured there has to be a higher return because their is some risk. Pinning all of that assumed risk solely on future IO prices is a little naive. I'll happily back the subscribers (who ensured the issue was 5 times oversubscribed, confident hey?) who purchased the bonds in a generally frosty debt market.
what they are trading at now is important not the cover ratio or the initial yield - why live in the past?
EQX Price at posting:
$1.90 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)