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Gold/Mining/Energy : Swift Energy (SFY) -- Ignore unavailable to you. Want to Upgrade?

To: Mark who wrote (685)2/28/1999 11:19:00 AM
From: wolfdog2  Read Replies (1) | Respond to of 1602
 
Mark, I'm not familiar with the SFY bonds. However, bonds and notes usually trade in $1000 units, with $1000 being the face value. In any event a convertable trades like both as a bond (or note) and a stock. So if the face value is $100 for these notes, then the note is trading at a 30% discount to its face value, which in turn increases the yield quite significantly--to around 9%.

I don't think you can make any inference about the future stock based on this information. What the price does tell you is that there is a significant risk premium built into the price of the bond.



To: Mark who wrote (685)3/1/1999 12:16:00 PM
From: compradun  Read Replies (1) | Respond to of 1602
 
The SFY bond are traded on the nyse and are quoted at about 70. The main attraction to these bonds is the yield of about 11.5%, a junk type rate. The bonds convert somewhere north of thirty so don't play the bond as an equity substitute....yet. I own them and like the prospects.


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