Q: my debentures have traded down to 120.
what should I do with this large capital loss and what is the future of these debentures for current holders? appreciate your analysis and direction.
what should I do with this large capital loss and what is the future of these debentures for current holders? appreciate your analysis and direction.
5i Research Answer:
CSU debentures have been weak. Nothing is new at the company, but these are inflation-linked debentures, and IF inflation declines the rate paid on these will decline over time. But, we would consider them very high quality debentures, and would not panic over the recent decline. We would prefer these to many other bonds. The company is in very solid financial shape and we would see minimal credit risk here.