Olam Perp Update

It sort of caught my attention that this bond is down 2 cents today while almost everything else is unchanged.

Still not quite at its Dec 12 lows of 78.5 so I suspect it could just be a chunky trade in the market that caused the banks to mark the price down and it probably means you will be getting calls from your banker to buy this bond on special.

The Olam Perp vs Olam 6% 2022 senior has widened out to a more reasonable 5% or so difference unlike the crisis in Dec when the 2 prices were converging.

At 83 cts, the 7% Olam Perpetual callable in 03/2017 will deliver 13% compared to the Olam senior 6% 2022 at 88 cts yielding 7.84%.

I plotted the chart of the perp vs the 2022 vs the Olam share price for your reference.

olam perp bond price chart