They have also moved to fair value accounting apparently. This means that the face value of the debt I believe is adjusted based on risk of non-payment. Just in the balance sheet that is. So the NTA is $1.81 adjusted after taking this risk into account. Face value I think is $1.86. So 5 cents of the discount is relating to the real risk of non-payment. The other 40 cents is just market sentiment.
I think it represents a 12% yield right now. Im guessing the market is going to skip a September October downturn and just go level for a month. I think HHY this will rise to the $1.60-$1.70 mark around the November time-frame.
HHY Price at posting:
$1.43 Sentiment: Buy Disclosure: Held
