Comments on: New bonds in the time of the inverted yield curve http://blogs.reuters.com/muniland/2014/03/07/new-bonds-in-the-time-of-the-inverted-yield-curve/ Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: CraigL http://blogs.reuters.com/muniland/2014/03/07/new-bonds-in-the-time-of-the-inverted-yield-curve/comment-page-1/#comment-2434 Wed, 12 Mar 2014 00:02:11 +0000 http://blogs.reuters.com/muniland/?p=13573#comment-2434 “The bonds mature in 2035 and were issued at an 8 percent coupon and an 8.727 percent yield, which was at lower end of expectations for the junk-rated debt. The bonds were being sold at a minimum price of $100,000, luring mostly hedge fund investors.

The issue was upsized from $3 billion to $3.5 billion due to unprecedented demand; total orders, received from 270 different accounts, surpassed $16 billion, which represents more than four and a half times the bonds available for sale.”

Well, how about that, Cate? People were falling all over themselves to buy the PR “junk” (in quotes, because the S&P clowns should be completely ignored when it comes to rating anything, as they stated in their own defense against the federal lawsuit).

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By: Cate_Long http://blogs.reuters.com/muniland/2014/03/07/new-bonds-in-the-time-of-the-inverted-yield-curve/comment-page-1/#comment-2430 Sat, 08 Mar 2014 23:23:17 +0000 http://blogs.reuters.com/muniland/?p=13573#comment-2430 After filing this post Barron’s reported

“The new deal, which is expected to consist of a single bond with a 21-year maturity and an expected average life of nearly 17 years, will likely carry a yield at or near 9%”

http://online.barrons.com/article/SB5000 1424053111904628504579423692991003348.ht ml

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By: nixonfan http://blogs.reuters.com/muniland/2014/03/07/new-bonds-in-the-time-of-the-inverted-yield-curve/comment-page-1/#comment-2429 Sat, 08 Mar 2014 18:02:23 +0000 http://blogs.reuters.com/muniland/?p=13573#comment-2429 Glass-Steagall was a reaction to the abusive underwriting practices of the 1920s. In the 20s, banks would lend money to Latin countries and then get repaid by selling bonds which then defaulted. The idea was that selling bonds to the public for the purpose of obtaining loan repayment from the issuer was a conflict of interest. It looks like the PR underwriters have a strong motivation to sell this issue in oder to get their loans repaid. There ought to be a law.

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