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Author: globalist2013 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35357  
Subject: Re: Inmet Date: 2/22/2013 1:22 PM
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LONGREITS,

The bond is

(1) Not yet trading in retail quantities. (See link below.)
(2) Not yet available thru E*Trade, Schwab, Fidelity, or Zions Direct as of 5 minutes ago.
(3) Won’t offer a real rate of return to maturity even if the trade could be done at the ‘Last Price’ of 107.625 (assuming customary tax-rates on ord-inc and a 5% inflation-rate).
(4) The 2016 call is even more adverse (assuming the same assumptions as previously).

Once again and as always, 'nominal YTMs' are meaningless unless the investor is deliberating choosing to depreciate his/her purchasing-power. The only thing that matters by way of investment returns is spending power at the grocery store or gas pump. So, other than the fact that the bond can’t be found to buy, and that buying it would lose you money, this is a wonderful opportunity. ROTFL.

But you're to be commended for making the effort to call the community's attention to this bond. Practicing one's due-diligence is never a wasted effort. At a much, much lower price this might be a good opportunity. But the bond market hasn't got it wrong. Given the bubble we are still in, the bond is priced in line with its peers, and it should be of no interest to long-term, defensive investors. (IMHO, 'natch)

Charlie
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http://cxa.gtm.idmanagedsolutions.com/finra/BondCenter/BondT...
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