Help me out here

[brewer12345]

I am looking at two exchange-traded bonds issued by Sallie Mae, a high grade issuer. One OSM, pays CPI plus 2% monthly. The other, ISM, pays CPI plus 2.05% monthly. OSM matures in 2017, ISM matures in 2018. They sound pretty similar, right? So why is OSM priced at 24.40 and ISM at 22.45?

 

[cute fuzzy bunny]

.05 times 11 years?

 

[saluki9]

Have you checked to make sure there are no other differences between these issues?

I'm looking at the pricing supplements and I don't see anything materials

Also, did you see that this difference is a relativly new phenomenon?

 

[brewer12345]

Relatively recent phenomenon, since ISM was only issued in February. I don't see anything different other than the maturity and the fact that OSM is a larger issue, leaving the extra 5BP of spread aside.