8 thoughts on “American Financial Group Prices Baby Bonds”

  1. Why would one buy this one when AFGB, C, D are all trading at 4.89% – 5.4%?
    They are all call protected thru 2024/2025
    even the most recent AFGC is trading at 4.9%

    Any reason the current issues wouldn’t reprice higher?

    1. The reason is simple – price.

      AFGB, C, D all trade way above par $25. In fact AFGB with 5.88% coupon is currently trading at $27.40!

      I guess a lot of the current holders of these costlier Preferreds would like to buy the new one in low $25s. In fact some may even try to buy it soon after IPO and try to flip it for higher …

      1. Well that’s silly…for Investment Grade bonds they are more sensitive to the G-curve, so the premium is reflective of where UST yields are at…Yield to Worst is all that matters

  2. Seems too low a rate for low investment grade with a 40 year maturity. I might not live to see this but I bet it will trade at a big discount to par before maturity. Inflation will rear its ugly head and the Fed will not be able to keep rates negative forever.

  3. I did not get a fill on this issue. Had been on the wait list and found out this am no wait list fills.

    1. Would be nice to look into a crystal ball. Want to know if we should get excited on any new issue if it is above 1%

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