Tuesday, February 24, 2015

Molycorp Unsecured Debt Yielding Over 200% to Maturity! $MCP

A million+ of the 3.25% 2016 notes traded today at 16.5 - a yield to maturity of 211%!

The 6% 2017 notes have been trading around 16 over the past week. Yield to maturity over 100%.

Notice that the shorter maturity has a higher yield to maturity: inverted yield curve, because  they are trading on expected recovery value.

Also notice that the higher coupon note doesn't have a higher dollar price. That suggests the market doesn't expect too many more coupons to actually get paid.

The stock has rallied and the market cap is back to $222 million!

1 comment:

whydibuy said...

So the point you are trying to make is that either the stock investors are wrong or the bond guys are wrong.