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In today's (thursday) WSJ page C12, mention of Met Life 6.4 of 12/2036 selling a little below par yielding 6.735. Sorry, no rating or CUSIP mentioned.

Interesting comment though...says the company is poised to become the No. 1 U.S. reverse-mortgage lender.
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if it's going to be the number 1 reverse mortgage lender, it's probably time to get out, not in.
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<<..Met Life 6.4 of 12/2036 …no …CUSIP mentioned.>>

It is good old 59156RAP3. For those of you like to read the fine print, this is one for y’all.

• Junior subordinated debt security, total tranche $1,250Mln face, carrying at $1,247Mln
• Scheduled redemption date 12/2036
• Final maturity 12/2066
• Interest paid changes to LIBOR + 2.205% after 12/2036
• MetLife may redeem at any time after 12/2031 or in certain events prior to 12/2031 at their principal amount
• MetLife may defer interest payments for a period up to ten years. Interest compounds during such periods of deferral.
• If interest is deferred for more than five consecutive years, the Holding Company is required to use proceeds from the sale of its common stock or warrants on common stock to satisfy interest payment obligation.
• MetLife agreed that it will not repay, redeem, or purchase the securities on or before a date ten years prior to the final maturity date of each issuance, unless, subject to certain limitations, it has received proceeds during a specified period from the sale of specified replacement securities. This sale is not intended to benefit holders or be enforceable by them.
• et. al.


WSJ is right, last transaction today was at 95.39 for $1Mln face w/YTM 6.718. Mr. Bond Market must have some understandable concern over all the code or something in the 242 page 10-K.
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You may want to internet search 5+ years into their past. IIRC this company blew itself up before everyone else did. I don't remember when they filed ch 11.

And I could be remembering a completely different Met

jack
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jackcrow,

You wrote, You may want to internet search 5+ years into their past. IIRC this company blew itself up before everyone else did. I don't remember when they filed ch 11.

I don't think MetLife has filed bankruptcy - at least not during my adult life.

BTW, MetLife recently became the #1 reverse mortgage lender by buying Lehman's reverse mortgage portfolio out of bankruptcy. I believe the deal paid Lehman Holdings 81 cents on the dollar.

Reverse mortgages are certainly risky, but I don't think you can reverse mortgage a home at 100% of FMV, the effective rate charged is usually higher than a conventional mortgage and PMI is mandatory. Between all that and the discount they received from Lehman's, the deal was likely a fair value for MetLife.

- Joel
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joel,

Thanks for the follow up.

jack
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