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04-01-2008, 04:11 PM
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#141
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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I didn't know that ownership of bonds had to be declared. Where does one get this information?
Also Twaddle- how do you see the buyers order? Or are you just inferring it from the price/volume behavior?
Basically, these issues had gone off my radar until they jumped last week at the same time that SLM common dropped markedly.
Unless they get a very good bid, given the interest rate environment I am content to hold my very modest committment for the time being.
Ha
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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04-01-2008, 04:38 PM
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#142
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 1,703
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Yahoo gets the institutional holder info from Vickers:
OSM: Major Holders for SLM CPI LKD NT - Yahoo! Finance
I watch the bid/ask with Ameritrade's Apex, which gives me a level-II view of the exchanges. This particular bidder places large bids using two different exchanges, and he has more sophisticated software than I do (I tried to bid against him back when these guys were at $14-$15).
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Emancipated from wage-slavery since 2002
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04-01-2008, 04:42 PM
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#143
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by twaddle
Yahoo gets the institutional holder info from Vickers:
OSM: Major Holders for SLM CPI LKD NT - Yahoo! Finance
I watch the bid/ask with Ameritrade's Apex, which gives me a level-II view of the exchanges. This particular bidder places large bids using two different exchanges, and he has more sophisticated software than I do (I tried to bid against him back when these guys were at $14-$15).
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Ah, thanks. My software from Fidelity only gives me Level 2 info on the NASDAQ. I think I'll call and complain.
Ha
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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04-01-2008, 05:23 PM
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#144
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
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It is strange last week there was a $.80 gap between ISM and OSM so I bought some at ISM 14.80 and sold the OSM at $15.60 now the gap is much smaller and the bonds have jumped up to 18.50.
At $15 I think it must be a buy, even if the management suceeds in bankrupting the company I got believe bond holders are going to get at least .50-.60 on the dollar.
BTW in case you missed..
"Sallie Mae Commemorates April as National Financial Literacy Month"
Quote:
RESTON, Va.--(BUSINESS WIRE)--Through a special U.S. Senate resolution, April has again been declared national Financial Literacy Month, and Sallie Mae, the nation’s leading saving- and paying-for-college company, reminds consumers that it is never too early – or too late – to learn the skills they need for effective money management.
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I think there is a former CEO now Chairmen, who may needs refresher course. $60 to $15 in a less than a year is quite a trick in money management.
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04-04-2008, 11:50 AM
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#145
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Mr. Deep Pockets is back at it again. 100,000 share buy limit orders for each of ISM, OSM, and JSM.
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Congressional Action on Student Loans. ISM/OSM?
04-17-2008, 03:28 PM
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#146
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
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Congressional Action on Student Loans. ISM/OSM?
Congressional Action on Student Loans. Any thoughts on how this will impact ISM/OSM share price and/or survivability?
UPDATE 1-U.S. House backs student loan intervention bill | Markets | Markets News | Reuters
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"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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04-17-2008, 03:36 PM
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#147
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Quote:
Originally Posted by youbet
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I think it was widely expected; but overall and over time I would think it has to make these securities safer. Not much reaction by the SLM, ISM, or OSM price quotes today, which is a little odd to me.
Ha
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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04-21-2008, 11:02 PM
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#148
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
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The June 15 - July 14 rate for ISM will be 6.03% at par. At recent ISM prices of about 17.6, you'll get about 8.56%.
I think folks who grabbed ISM at recent $15 prices made a smart move. If it doesn't default, they're making 10% in July. And if it defaults, they'll only need a 60% recovery to get their money back, a likely outcome.
Probably not a good place to put next weeks grocery money though......
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"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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04-22-2008, 07:26 AM
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#149
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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So whats the big attraction for this vs something like the High Yield Corp fund that yields the same and has a lot more diversity? Well, except for the CPI indexing. Anyone think that if inflation shoots to 10 or 12% that they'll pay out those big checks for very long?
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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04-22-2008, 08:25 AM
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#150
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Quote:
Originally Posted by cute fuzzy bunny
Anyone think that if inflation shoots to 10 or 12% that they'll pay out those big checks for very long?
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My money says they will continue to pay out. The ISM/OSM CPI-linked issues amount to only a few hundred million in debt. A peek at their Dec 31, 2007 balance sheet shows $111 billion in total long term debt outstanding. It seems silly to bring all your debt into default and radically change the outlook for the future of your company just because you have to pay a little higher coupon on .1-.2% of your debt.
Maybe they have more CPI-linked debt on their balance sheet? Of course they may also have swap agreements in place to hedge some/all of the CPI risk. Hopefully Bear Stearns isn't the counterparty!
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04-22-2008, 08:58 AM
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#151
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 2,433
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Lots of volume in OSM so far this morning. Both ISM and OSM are extremely well bid at 18.25. I guess Mr. Deep Pockets is back again today.
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04-22-2008, 09:22 AM
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#152
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
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Quote:
Originally Posted by FUEGO
My money says they will continue to pay out. It seems silly to bring all your debt into default and radically change the outlook for the future of your company just because you have to pay a little higher coupon on .1-.2% of your debt.
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Agreed, at least regarding whether SLM would/could pay a high inflation component for ISM/OSM. SLM is BBB+ which means risk. But I don't think they will go into default only over paying a high inflation component for ISM/OSM, a small part of their total debt.
Now.... having said that, I do note that Congress Critters are becoming involved in student loans again by establishing publicly funded loan sources should the private sources dry up (see my post on 4/17). And at least one of the current pres candidates has mentioned that investors need to be punished in retribution for all the wild profits they've been making, so no telling where that will wind up going.
So, risk in general at SLM? You betcha! But not over paying the inflation component of ISM/OSM. IMHO.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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04-22-2008, 03:54 PM
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#153
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
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Quote:
Originally Posted by cute fuzzy bunny
So whats the big attraction for this vs something like the High Yield Corp fund that yields the same and has a lot more diversity? Well, except for the CPI indexing. Anyone think that if inflation shoots to 10 or 12% that they'll pay out those big checks for very long?
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Yes, I do because they have a lot of student loans which have variable interest rates so as long as real interest rates remain relatively constant, a rising inflation rate will increase SLMs income as well as the payments to OSM/ISM holders.
When I investigated SLM, before buying OSM/ISM, it looks like Sallie Mae did a pretty good job of matching their fixed income student loans with fixed income securitization and variable loans with variable interest rate bonds.
Also there is a lot of capital gains IF the bonds are paid back. At $17.50 the remaining 9+ years is worth an additional 4%/year add that to the 8.5% coupon and total return is over 12% at todays inflation rate.
Still I wish I had never heard of them much less bought them.
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04-22-2008, 04:05 PM
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#154
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
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Quote:
Originally Posted by clifp
Still I wish I had never heard of them much less bought them.
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As long as you haven't gotten to the stage of regretting the day you were born, all will work out ok. I've learned more from this experience than I have since, as a child, I lost the nickle my dad had given me to buy a soda.........
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"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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04-22-2008, 04:33 PM
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#155
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
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LOL, BTW what did you learn from the lost nickel?
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04-22-2008, 09:01 PM
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#156
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
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That dad doesn't replace lost nickles so when you get one you better take care of it!
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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04-22-2008, 09:25 PM
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#157
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Aww, if Gabe loses money, I give him some more. But we talk about it.
I guess this is the difference between 2000- and the 1880's?
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Insider Buying at SLM Corp
04-24-2008, 11:30 PM
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#158
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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Insider Buying at SLM Corp
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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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04-25-2008, 09:06 AM
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#159
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
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Quote:
Originally Posted by haha
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Interesting. I'm also trying to keep up with potential legislation regarding student loans. It seems a number of lenders have dropped out of the game since the feds changed the rules and now loans are getting scarce and expensive. Will the eventual legislaton involve the Treasurey buying loan packages? New rules? Fed subsidies? The feds getting back into the business of making loans directly to students?
With the market demanding high yield type rates for student loan backed paper, it doesn't look good for students unless the feds step in. If I was a student looking for a loan today, seeing that the company making me the loan was paying 10% - 12% YTM to get the money would not be a good sign........
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"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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05-17-2008, 10:42 AM
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#160
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,186
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For the July 15 through August 14 period, ISM will pay 5.99% at par. At recent prices, that would be in the 8.2% range. For folks who chose to jump in at around a $15 price, it would be almost 10%.
Of course, if SLM goes belly-up, distributions might be a little less.......
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"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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