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Help me out here
Old 04-17-2006, 03:02 PM   #1
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Help me out here

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?
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Re: Help me out here
Old 04-17-2006, 03:18 PM   #2
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Re: Help me out here

.05 times 11 years?
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Re: Help me out here
Old 04-17-2006, 03:30 PM   #3
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Re: Help me out here

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?

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Re: Help me out here
Old 04-17-2006, 03:52 PM   #4
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Re: Help me out here

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.
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