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Strategies & Market Trends : Ocwen Asset Inv. Co (OAC) -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (45)	9/17/1998 2:18:00 PM
From: mod	Read Replies (1) \| Respond to of 64

bob, Actually, that is not such a high interest rate for a junk bond. I bought some 10-year notes of Ocwen's Ocwen Federal Bank sub three years ago. They are rated B1/BB-, which is a high grade of junk bond, slightly below investment grade. They have a coupon of 12% and currently trade slightly above par to yield 11.7%. So an 11.5% yield for OAC senior notes appears to be reasonable to me. They were likely sold to institutional and/or accredited investors, since they were not registered. Dennis