Mulligan
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- May 3, 2009
- Messages
- 9,343
I'm confused (again). Can anyone help me understand the following scenario?
CHSCP is an 8% perpetual preferred of CHS. It closed at $30.20 yesterday. It's next call date is 28 July 2023 at $25. That looks like a negative YTC to me. Why would it be selling at a price that results in a negative YTC?
I called CHS investor relations and they said they had no information that the call date was being extended (as happened in 2013).
What am I missing?
I think they are just betting on history repeating itself. A lot of the original farmers and patrons own this and through a fit last time and got it renewed. That was 10 years ago and 20 since issuance. I wouldnt make that bet myself. Of course it rates are high enough they will leave it outstanding for their own self interests though. But I sure am not interested there.