|
|
|
|
| BondsOnline.com: instant access to and extensive coverage of over 3.5 million stocks, bonds, indexes and other securities covering major and emerging markets and exchanges across the globe. |
|
|
| Bonds Online |
|
|
| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.00% |
|
|
S&P California Bond Index
|
2.96% |
|
|
S&P New York Bond Index
|
3.13% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.70% |
|
|
| S&P/BGCantor US Treasury Bond |
400.09 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
848.03 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
174.07 |
|
|
S&P REIT Index (TR)
|
425.30 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,469.58 |
|
|
S&P MLP Index (TR)
|
5,428.50 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
Will Your Bonds Get Slammed In A Takeover? |
Forbes - July 26, 2011 - By Marilyn Cohen
When things are going along swimmingly for bondholders, the world is our oyster as Shakespeare wrote in the Merry Wives of Windsor. But when events go wrong and news drives bond prices, you had better know just what you own.
As merger and acquisition activity becomes more pronounced, if you own bonds that do not have “Change of Control” (COC) provisions you could see your bond prices tank. That’s because you have no protection from another company–or a private equity firm–acquiring your issuer and financing the purchase with debt issued by your company.
You know what I mean if you’ve ever awakened to news of a bond issuer that you own being taken over. I experienced this in 2005 when Harrah’s Operating Company was acquired by a private equity group using debt. My bonds had no COC provision. We bondholders were all up the proverbial creek.
A Change of Control provision allows for redeeming bonds if there’s a corporate take over or merger. Another mechanism known as a “Poison Put” activates should certain events occur as spelled out in the original bond prospectus.
So, how bad were Harrah’s bondholder’s hit? Terribly. When I tried to get out, my first trade was down 15 points. That’s a loss of $150 for every $1,000 face value traded. I was lucky to get out then as the bond’s value continued to plummet. After all these years, Harrah’s bonds have been restructured, downgraded from BBB- to CCC and endured a technical default on December 24, 2008. This debt-laden takeover was deadly for Harrah’s bondholders.
So where do you find the information as to whether your issues have a Change of Control or Poison Put?
Fro the complete article.
|
|
|
|
|
|
| Partner Market Place |
|
|
|
| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
|
|
| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!
Unsubscribe here [+] |
|
|
|
|
|
|
|
|
