Wednesday, October 28, 2015

Oxley Bonds 5% 4 Year Retail Bond Thoughts

News of the Oxley bonds came out 2 days ago. 4-year tenure and 5% coupon. Not impressed.

(based on latest financial statements)

Other bloggers have come out with their take on this bond, but mine is pretty quick and easy.

I wouldn't apply for this bond and I won't be delving deeper to analysis them. Their balance sheet looks horrible to me.

Take note the key difference in being a bond investor vs a stock investor: Return OF capital vs Return ON capital.

How their business is doing is a lot less relevant to me than if they have assets which I can fire-sale at 50% discount and still recover my principal.

I thought Perennial was a decent issue to apply for.
I thought Aspial was not attractive enough for the risks present.
I think Oxley looks even worse than Aspial, so that's enough said.

Would you be applying for the Oxley bond?

Will you apply for the Oxley 4-year 5% bonds?
Yes0%
No0%
Don't know0%

5 comments:

  1. Thank you for your valuable info. This is nice blog.I am so appropriate to found this fresh and wonderful blog news.

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  2. Hi GMGH
    The Debt/Equity and Debt/Assets are loud and clear to make a decision on buy or bye.
    Thank you.

    ReplyDelete
  3. This comment has been removed by the author.

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  4. Thanks. I hooted Perennial hehe. Wont be hooting Oxley looking at this

    ReplyDelete
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