Fed cuts interest rates to Zero

[dixter]

personally I'm not seeing what should happen when the Fed drops rates and how it normally affects corporate bonds... normally when the Fed drops rates then the cost of ownership for a given bond goes up...I see many many bonds that are doing just the opposite.... this can only be because of investors selling the bonds.. so in those cases we have a great time to purchase corporate bonds... if any of you are chance takers and looking for a potential purchase... how about this one... CARNIVAL CORP NOTE CALL MAKE WHOLE
yes, I know... but if the Government decides to use their ships then there is no way that Carnival is going BR... so here are the details... Kinda hard to pass on 36.198%

Matures: 10/15/20
Coupon: 3.95%
Yield to worst: 36.198%
Price: 84.88
Cusip: 143658BA9

 

[COcheesehead]

personally I'm not seeing what should happen when the Fed drops rates and how it normally affects corporate bonds... normally when the Fed drops rates then the cost of ownership for a given bond goes up...I see many many bonds that are doing just the opposite.... this can only be because of investors selling the bonds.. so in those cases we have a great time to purchase corporate bonds... if any of you are chance takers and looking for a potential purchase... how about this one... CARNIVAL CORP NOTE CALL MAKE WHOLE
yes, I know... but if the Government decides to use their ships then there is no way that Carnival is going BR... so here are the details... Kinda hard to pass on 36.198%

Matures: 10/15/20
Coupon: 3.95%
Yield to worst: 36.198%
Price: 84.88
Cusip: 143658BA9

Its not a US company- British owned.
It won’t be bailed out.
It’s a sinking ship- pun intended.

 

[dixter]

Even MICROSOFT CORP NOTE CALL MAKE WHOLE is paying 4.75% ... why let the banks pay you nothing...

The Fed said today that they are going to be propping up the muni market by purchasing munis... there are tons of munis paying 5% tax free coupons with many priced below par...

 

[dixter]

didn't say they would be bailed out... they will be paid very very well for the use of those ships... they won't lose a dime...

 

[COcheesehead]

Even MICROSOFT CORP NOTE CALL MAKE WHOLE is paying 4.75% ... why let the banks pay you nothing...

The Fed said today that they are going to be propping up the muni market by purchasing munis... there are tons of munis paying 5% tax free coupons with many priced below par...

+1

 

[COcheesehead]

didn't say they would be bailed out... they will be paid very very well for the use of those ships... they won't lose a dime...

Yet yielding 36%...lol.