As noted by some participants on the website, the new baby bond issue from Affiliated Managers Group (NYSE:AMG) is now trading on the NYSE under ticker MGR.
This 5.875% issue is strongly investment grade–a couple notches higher in rating than the recent baby bonds issued by NextEra Energy and Duke Energy.
This issue is trading kind of soft for an issue with this particular coupon (5.875%) as it is now trading in the $24.80 area. Likely the weakness is because the issue is 12-13 million shares counting the over allotment. Given the coupon (for a strongly investment grade issue) we would think these shares should move higher when the shares get sopped up.
We have purchased a position in this issue (although we are not recommending folks do so since we never recommend).
Thanks to Jeff for noting this issue trading.