25% zero-coupon unsecured notes due July 2033 but which are putable
in July 2009; iv) $300 million in 1% convertible unsecured notes due February 2013; and v) $200 million of the proposed senior unsecured notes due 2014.
On the cost side, however, the put option in putable
convertibles means that stockholders' ability to pursue genuinely value increasing long-term investment strategies may be circumscribed by the fact that convertible holders may put the bonds back to the firm if its stock price were to go down, even due to factors outside the stockholders' (managers') control.
Fortunately, a small adjustment, changing the interest rate on the putable
debt from fixed to floating, allows the risk signal embedded in the credit spread to be sorted out from the changing value of the put option attached to the subordinated debt.
Despite this, PUMH's capital structure remains very aggressive for its rating level and cash to putable
debt is less than 1x.
To limit liquidity risk, the funds seek to invest at least 30% of their portfolios in weekly liquid assets, which are typically VRDNs putable
to a third party financial institution in seven days or less.
50 Billion of Structured Quarterly Putable
Borrowings; Reduces Balance Sheet by $8.
Additional concerns include cash to putable
debt at a weak 63% and term-out provisions that are fairly aggressive.
Convexity - A more accurate means to manage the convexity exposure inherent in mortgage securities, mortgage servicing portfolios, swap books and holdings of callable and putable
25% zero-coupon unsecured notes due July 2033 which are both putable
and callable in July 2011; iv) $260 million in 1% convertible unsecured notes due February 2013; v) $30.
April 30 /PRNewswire/ -- The interest rate on TVA 1998 Series D Putable
Automatic Rate Reset Securities bonds, which are traded on the New York Stock Exchange under the symbol "TVC," will be reset from 5.
April 2 /PRNewswire/ -- The interest rate on the Tennessee Valley Authority 1999 Series A Putable
Automatic Rate Reset Securities bonds, which are traded on the New York Stock Exchange under the symbol "TVE", will be reset from 5.
A new type of MMF-eligible putable
securities with step-up coupons was offered to U.
The convertible preferred stock is contingently putable
, will pay dividends quarterly in arrears, and will be convertible upon the occurrence of specified events into cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's option.
With regard to factors applied to liabilities, the AMBLM was modified in 2008 to capture increased liquidity risks of guaranteed investment contracts (GIC) and funding agreements (FA) with putable
May 1 /PRNewswire/ -- The interest rate on the Tennessee Valley Authority 1998 Series D Putable
Automatic Rate Reset Securities, traded on the New York Stock Exchange under the symbol "TVC," will be reset from 5.