No. of Recommendations: 4
at this particular juncture of the interest rate cycle, XOM bonds regardless of whether you are talking short term or long term are trading at a premium to par given they are rated AAA.

there is 1 specific XOM bond issue with cusip 607059AT9
it has an interest rate of 8.625% but is trading in the $152 range. $100 is par value.

also XOM related/backed bonds can be found under XTO Energy which means they are essentially XOM bonds. in addition there is seariver maritime, BUT i am not sure off the top of my head how logistics on those works.

to give you an idea on XTO bonds. there are 4 series/floats that redeem before 2016. yields on 3 of them are <.35% while the 2016 float's yield is .708.

on the longer term stuff, yields are in the low/mid 3% range and we are talking 24-26 years til redemption date. you would also have to explore potential call risk as well.


Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.