Merrill developed a product called LYONS and many of these zero coupon converts have Yield to put over 10%. I particularly like sgr with yield to next put of about 13.5% The 05/21 bond is by far the largest long term debt on the company's books and they have cash available to redeem. They have option of issuing shares but the stock price will be set at put date. Some of the bonds will be like toxic converts if company does not have cash to redeem(eln as an example). Here are the LYONS yielding over 10% to put:
aol,aspt,atml,av,cls,ctxs,glw,ep,eln,mot,net,omc,pvn,rcl,
sanm,sgr,slr,tyc, usm,wdc.
Trick is to figure out which will be able to cash out the puts. |
