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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Lymond who wrote (60978)5/28/1999 9:53:00 AM
From: Lymond  Read Replies (1) | Respond to of 132070
 
The two T issues you quoted are callable in 2001 and 2002. Since both are premium bonds, they trade with fairly short option-adjusted durations. Accordingly, their option-adjusted yields are naturally lower than nominal yields to maturity.

FYI -- here are current spreads on some long-dated non-callable corporates

AT&T + 115 Tyco +123
Sprint +145 Motorola +125
Lucent +100 Ford +129



To: Lymond who wrote (60978)5/28/1999 10:55:00 AM
From: Knighty Tin  Read Replies (2) | Respond to of 132070
 
John, Yeah, the one thing you always have to check out in detail on a corporate bond is the call feature. To me, it is a deal that says if you were smart when you bought the bond, your profit is extremely limited. But if you were wrong on rates, we can rip you off for 30 years. Such a deal. <g>


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