New Corporate bond?

[stevensfo]

Looks like there could be another Burford Capital Corp bond on the way.

https://www.trustnet.com/Investments/Ar ... 700093313D


Steve

[stevensfo]

Looks like 9 years at 5%.

http://www.fixedincomeinvestor.co.uk/x/ ... -plc-6-125

[langley59]

The previous BUR bond issued a year ago was 6.125% for 8 years, which I bought. This is now trading @ 108. I suppose a combination of UK corporate bond yields compressing further plus the company's good overall performance has enabled them to raise funds more cheaply this time.

[stevensfo]

The previous BUR bond issued a year ago was 6.125% for 8 years, which I bought.

Yes, me too. I'd expected a similar coupon, so it's a bit of a shock to be offered 5% and over 9 years as well.

I'm inclined to give this one a miss, but will wait for the write-up on the Fixedincomeinvestor website, which is always worth reading.

Steve

[langley59]

I agree with the comment about the Fixed Income Investor website.

I suppose that the 5% coupon approximates the yield to redemption of the earlier bond as it is trading well above par.

I think I will also give this one a miss.

Having read through the Burford 2016 results and presentation I have also started to build up a position in the shares on the recent pullback, something I wish I had done before.