Friday, May 11, 2018

The Martket, Energy, And Political Page -- T+2, May 10, 2018

Tesla bond rate. Link here.

Back down to $87.33 today.

This link: Tesla, 2025 bond; coupon rate, 5.3%; 7 years to maturity; quarterly payment interval:
  • yield to maturity: 7.65%
  • current yield, annual: 6.03%
From a reader:
Almost every single time a company's stock price had a total collapse, it was preceded by a crush in the same company's bond prices up to a year before.
Ford and GM in 2009, American Airlines, Blockbuster, Enron, Boeing in 2001, you name it.
It's extremely rare for a company's bond to crash while its stock price keeps going up for much longer. I can't even think of a single example where this happened before.  

Disclaimer: I make a lot of simple arithmetic errors. I often see things that do not exist; I read quickly and miss important points. Sometimes it takes me days (maybe even weeks) to see where I was wrong.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, relationship, or travel decisions based on what you read here or what you think you may have read here.


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