American Financial Group Inc. (AFG) has priced their previously announced baby bonds.
The bonds priced at 4.50%. These are rated BBB- by Standard and Poors and Baa2 by Moodys.
Shares will trade in the next week or so under the ticker AFGE. Being a baby bond there will not be OTC grey market trading.
The pricing term sheet can be read here.
You’d very Lucky, Mr C.
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?
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 …
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
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.
I did not get a fill on this issue. Had been on the wait list and found out this am no wait list fills.
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%
I hate to even think about it.