The notes I own are:
Ocwen Federal Bank, Subordinated debentures, dated date 6/15/95, due 6/15/20005, 12% interest payable July/December 15. Rating Moody B1, S&P BB-. Cusip number is 67574NBM5.
As of 8/28, my account statement was pricing them at 103 (down from a high of 110 earlier this year, as there has been a flight to quality in the bond market). I don't know how liquid they are or how much they trade, I bought them in the original offering and intend to hold to maturity. I like a 12% yield in a period of 3% inflation, and I believe Ocwen is financially secure so I will be paid.
I don't own any OAC, but at $7 it has a current yield of 23%, and I am tempted. I may wait for the dividend announcement next week, if it is equal to last quarter's $0.41 I may buy some, for the yield and, eventually, capital gains.
Dennis |
