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November 2012

Recs

7

Got a Raise Today

November 27, 2012 – Comments (4) | RELATED TICKERS: MKC

McCormick announced it's raising the dividend from $0.31 to $0.34 per share.  Three cents may not sound like much, but nearly 10% compounded can pile up after a while.   [more]

Recs

2

Stuff the turkey with some yield

November 21, 2012 – Comments (1)

It was past time to do something other than bonds, so I ran a screen on a search for yield and found some.    [more]

Recs

4

A New High!

November 20, 2012 – Comments (2) | RELATED TICKERS: MKC

McCormick simmers.  [more]

Recs

7

A not-so-safe bond

November 19, 2012 – Comments (7)

Barclays had some interesting paper mixed in with last week's new bond issues.  The $3 billion, 10-year carries an invesment grade rating, but has a coupon rate that looks more like junk.  The extra risk premium is because the new bond is a contingent issue - if Barclays Tier-1 ratio fall below 7%, the bonds go to zero.  Not zero coupon, zero value.  There's a decent cushion between the current ratio and the trigger point, but still...  It isn't unusual to find contingent convertible, or CoCo, bonds that convert to equity based on some trigger event, but contingent busted is pretty rare.  Reuters has a good write-up on the issue if anyone wants more information.  The really fascinating part is that they found plenty of buyers for this stuff at a 7.65% yield.  The risk may be low, but here's a little musical description of what could happen to those bondholders in another financial crunch.  [more]

Recs

1

Abbott's AbbVie Borrows Big

November 12, 2012 – Comments (0)

Abbott's soon-to-be spinoff Abbvie led last weeks borrowing charge with nearly $15 billion in debt spread over 3 to 30-year maturities.  A big chunk of the money heads back to Abbott where it'll finance a tender offer to redeem existing debt.  Basically, looks like a balance sheet shuffle because of the spinoff.  [more]

Recs

0

A Bond Market Twist

November 07, 2012 – Comments (2)

The WSJ is reporting (may require subscription) that some ExxonMobil and Johnson & Johnson bonds are trading at a lower yield than comparable treasuries.  [more]

Recs

4

Big Savings for Verizon, New Low for Microsoft

November 05, 2012 – Comments (1)

Low as in record low yield on a 5-year corporate bond for Microsoft.  [more]

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