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New Corporate bond?
Posted: April 27th, 2017, 10:39 pm
by stevensfo
Looks like there could be another Burford Capital Corp bond on the way.
https://www.trustnet.com/Investments/Ar ... 700093313DSteve
Re: New Corporate bond?
Posted: May 11th, 2017, 8:20 pm
by stevensfo
Re: New Corporate bond?
Posted: May 12th, 2017, 3:24 pm
by langley59
The previous BUR bond issued a year ago was 6.125% for 8 years, which I bought. This is now trading @ 108. I suppose a combination of UK corporate bond yields compressing further plus the company's good overall performance has enabled them to raise funds more cheaply this time.
Re: New Corporate bond?
Posted: May 12th, 2017, 10:13 pm
by stevensfo
The previous BUR bond issued a year ago was 6.125% for 8 years, which I bought.
Yes, me too. I'd expected a similar coupon, so it's a bit of a shock to be offered 5% and over 9 years as well.
I'm inclined to give this one a miss, but will wait for the write-up on the Fixedincomeinvestor website, which is always worth reading.
Steve
Re: New Corporate bond?
Posted: May 13th, 2017, 3:21 pm
by langley59
I agree with the comment about the Fixed Income Investor website.
I suppose that the 5% coupon approximates the yield to redemption of the earlier bond as it is trading well above par.
I think I will also give this one a miss.
Having read through the Burford 2016 results and presentation I have also started to build up a position in the shares on the recent pullback, something I wish I had done before.