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Strategies & Market Trends : BONDS...Let's talk

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From: Mike McFarland	12/2/2008 12:53:32 PM
	of 37

Somb Bonds Offer Diamonds in the Trough online.wsj.com Another overlooked bond is from Thermo Fisher Scientific, the largest provider of research laboratory products. It has $932 million of net debt and a $14 billion market capitalization. The 2015 bonds yield about 9.2%, despite an investment grade credit rating of BBB+. The company is expected to generate annual free cash flow of about $1.4 billion over the next three years, more than enough to meet ongoing needs, say analysts. The bond issue is relatively illiquid, with just $500 million outstanding. If I had the flexibility to actually invest, I'd look into that. However, my 401k-type plan offers only a handful of broad indices. Maybe that is a good thing, but with the ten year hitting 2.7% today, you have to think that the govt treasury rally will spread out now. 9%, that is fantastic and it is hard to see the risk.

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