Just curious... are you short any stocks? I've got puts to hedge some key holdings ENF.TO and REI-UN.TO. Also, net short on just one stock the last few weeks.. .FE. I sold off my RAI long call options but still gonna hold the stock and also my LO stock and options until the merger.
Disagree... rates won't go up if the economy does not show strong growth. and if there's strong growth, a quarter or half percent rate increase won't matter off such a ridiculously low base. The fed's been painfully clear... no solid growth then no rate hikes.
Screw a 25 or 50 basis point move up in interest rates off of a base of basically zero. A stronger economy with more people working and more money in their pockets means a boost to sales of premium cigarette brands. I'll begin to worry about being invested in stocks when inflation starts to move up strongly, not before then.
If the new issues are expected to drop in market value by 15% there would be no good reason for anyone to participate in the exchange, unless they expect to sell them years from now at a higher price or hold to maturity in 2040... yeah that's the ticket....duh. Cmon stop posting such crapola.
I might agree if the GDP growth does not accelerate in conjunction with any rate increase, But that remains to be seen. I fully expect the two to be linked. Earn more and you can afford to pay higher rates... pretty simple.
RE: open market buys... The practice you refer to is generally frowned upon by the bond market. It does not look favorably on companies that buy back outstanding debt at distressed levels. The market expresses this disapproval by demanding higher rates on any newly issued debt.
RE: open market pricing... Naive thinking. Corporate bond prices depend on company risk assessment and state of the economy and interest rate outlook. If the outlook called for recession and 0.1% 5yr rate and company was in great shape, the corp bonds could most certainly trade above face value.
Why should there be fear? Fear of what... a faster growing economy and a small bump up in currently non-existent interest rates? Duh...
I understand this. But my question remains... What benefit is there to having lower debt with higher rates so that interest costs remain unchanged? The only possible advantage I see is that the debt maturity profile is extended out to longer times so less pressure on refinancing.... nothing else. Not bad, but nothing to cheer very much about either.
Looking at PE of LO going into the merger is pretty much meaningless. Let's see where the PE of RAILO is a year from now... I think it will be much lower than that of either RAI or LO today.
Considering BTI traded as low as 103 in early January, 116 seems a bit high to me. I think I'll stick with LO until the deal closes and see if I can get it a better price then.
---Because of the significant debt reduction we can achieve, we don’t expect an increase in interest expense from this exchange---
How exactly does less debt at higher effective interest rates help CLF? It seems to me the only real gain here is a pushout in their debt maturity profile. That's not a bad thing I suppose, but in the shorter term there is no obvious benefit.
MT is not completely left out in the cold. They have a significant operational presence in Ukraine, which is in a similar situation to Russia with respect to FX, as noted it the report you posted.
@@@@@ArcelorMittal Kryvyi Rih is the largest full-cycle metallurgical company in Ukraine. Its production plants include a coke and by-product plant, a mining and benefication complex, iron-ore deep mining, and a metallurgical complex consisting of a sinter and blast furnace, steelmaking and rolling process departments.
Unlike in the case of HD-1080 or UHD-4K, there is no standardized definition of what precisely constitutes HDR. Until that is resolved, the moniker is meaningless.