ago, mbi, cryp are up, up and up, bought more akf today

at 3.31. At 3.31, dividend rate for akf is 45%. Next ex dividend rate is 12/15, pay day is 12/31.

Below is copied from yahoo akf message board:

At under $3/shr, the yield is over 50%.

Obviously, the risk of insolvency is an element of the precipitous price drop in both AKF and AKT, but can that explain it all?

Personally, I\'m guessing that the pps drop is due to forced selling by institutions that can no longer hold this lower-rated debt as a result of Moodys and S&P\'s actions last week. This could mean an excellent opportunity for the retail investor.

But that\'s just my guess, of course. Does anyone else have more informed opinions or (dare I dream?) actual information regarding the ongoing safety of these debentures? I know that these must be made whole ($25/share) before the common or preferred shares get a penny, so even a $.10 on the dollar settlement in insolvency would pay $2.50.

Any other thoughts or info?

Thanks in advance.

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Ambac says they have 1.88X of their annual debt service already in hand. So they shouldn\'t have to go to the regulators to approve a dividend from AAC for some time.

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Even after the recent downgrade, S&P still gives Ambac a BBB unsecured debt rating.

So even in this environment and projections by S&P this debt is still investment grade.

The Moody\'s BA1 (highest junk) rating is just them covering their ass.

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