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Just curious, what are the yields on straight BAC debt (and not the new FDIC insured bonds they've been doing)?Might be a better idea to take whatever you have in the pfds and sell them and then use 20% to buy some common, and 80% to buy senior debt. Risk/Reward might be a lot better. When I get to work tomorrow I'm going to run some numbers.
yanivpete,For senior unsecured debt, I see issues show a YTM anywhere from less than 6% to 13.7%. The YTM varies a lot and doesn't seem to show any sane transition between near-term and long-term maturities.I pulled those numbers from TD Ameritrade's online bond desk; but I also like to see what Fidelity is showing as well. Fidelity seems to be listing some BAC debt in excess of 14% YTM.Right now, CFC-PB is showing a simple effective yield of > 22%.- Joel
correct, but CFC-PB is 'preferred', not 'debt'After all common dividends are ended, the boards of directors will end traditional preferred divies and then 'trust preferred' divies as things get worse and worse.
IKL 1.469 @ $12.07 fri.= 12.07% @ $25 par =5.87%IKR 1.500 @ $12.41 fri.= 12.08% @ $25 par =6.00%IKJ 1.625 @ $12.76 fri.= 12.70% @ $25 par =6.50%