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Genworth Financial, Inc. Message Board

  • robchadwick robchadwick Mar 24, 2009 4:28 PM Flag

    GNW bonds

    I purchased a non-callable GNW bond ~$5000 due in May a couple weeks ago with a yield to maturity of 14%. I'm still seing some available that mature in May with a YTM at close to 10%.

    The fundamentals right now don't like there would be an even that would wipe out bondholders within the next few months.

    Am I missing something? Thoughts? Anyone else buying GNW bonds?

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    • the may gnw bond shouldnt be a problem.. just bear in mind that the q1 results will be released in early may before the bond matures.

      they just announced their prefered share dividends so you really shouldnt have any problem with the bond which is more senior than the prefered.

      jb

      • 1 Reply to jim280zxt
      • Thanks.. seemed like a no brainer to me, but who knows these days.. Small chunks of BBB bonds out there with short maturities still seem to pop up, especially in the financials.. I'm sure there is a lot more potential to be made trading the underlying stock, but I feel OK about spreading out into short maturity bonds in companies that have what look to be serviceable balance sheets.

        I picked up a smaller quantity of bonds in $1000 chunks a couple of weeks ago that are backed by CIT at 16% YTM in November if I remember correctly. CIT makes me a little more nervous than GNW, but they've switched to a bank holding company, haven't yet eliminated their dividend, etc.

        Short term though, especially May timeframe, GNW seemed like a pretty safe bet as far as bonds go.

        Thanks all

    • because there will NOT be a negative event. GNW is under the control of program trading.... It will take great news to send her to da moon. Sit tight and you are right bto say that bond activity says we are OK.

 
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