• 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5

what is your opinion of GE short term debt safety? Nice return for 2 or 3 years.

#1
what is your opinion of GE short term debt safety?  Nice return for 2 or 3 years.
  Reply
#2
I bought a few GENERAL ELECTRIC CAPITAL CORP MTN 3.00000% 02/15/2020 (36966TEK4) yesterday for an annual YTM of 6.69%.
I probably would be ok with 2 years, but I saw these shorter maturities and I felt better about buying them.  Three years, I don't know.  A lot can happen in three years.
 
My original plan was to wait until they were downgraded below investment grade, and then buy.  GE was downgraded, but only to BBB+, so it might have been a long wait.  Anyhow, the yields were already like junk bonds, so I went for a small short position.  
  Reply
#3
(11-21-2018, 11:32 AM)Djeayzonne Wrote: I bought a few GENERAL ELECTRIC CAPITAL CORP MTN 3.00000% 02/15/2020 (36966TEK4) yesterday for an annual YTM of 6.69%.
I probably would be ok with 2 years, but I saw these shorter maturities and I felt better about buying them.  Three years, I don't know.  A lot can happen in three years.
 
My original plan was to wait until they were downgraded below investment grade, and then buy.  GE was downgraded, but only to BBB+, so it might have been a long wait.  Anyhow, the yields were already like junk bonds, so I went for a small short position.  

I suspect you did not mean to say that you shorted a high yield bond.
  Reply
#4
I think we can safely replace "short" with "shot-term"
  Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)