LMIRT n4.1%200622S   

This bond to be refinanced soon....

In normal circumstances, this junk bond wouldn' t be too bad or risky. But if the trade war prolongs, global economy forecasts recession in another half a year.
If you looked it up, during recession period, junk bonds of this grade can have default rates of around 20%.

 

It is a junk bonds with also recent credit downgrades on the coy itself. but it is safer when you compare it to hyflux perp. bond. The upside is that they are offering a discount for these units. 98.9% something. you would need to dyodd.

john_ric      ( Date: 17-Jun-2019 12:11) Posted: 7.85% is high.  another junk bond ??

 

Yeah,.... but another name for this is : High-Yield Bond,... in  dropping interest rate environment,... JUNK Bonds my stand...

john_ric      ( Date: 17-Jun-2019 12:11) Posted: 7.85% is high.  another junk bond ??

 

7.85% is high.  another junk bond ??

 

LMIRT" s latest USD Bond Offering of 7.85% will be used to refinance this bond here,... as per a paragraph from  a recent related article....

" Proceeds from the new issue will be used towards working capital and refinancing existing debt, which includes LMIRT&rsquo s S$120m credit facility and their S$75m LMRTSP 4.100% 22Jun2020 Corp (SGD). LMIRT is rated &lsquo Ba3&rsquo by Moody&rsquo s Investors Service and expected to receive a &lsquo BB&rsquo rating from Fitch Ratings."

So,.. no prob,...LMIRT is not defaulting....