I couldn’t find a lot of data about bonds in the forum. Please give me the links if there are interesting info about bonds. I understand the basics (maturity, YTM, coupon)
What are your criteria to invest in/pick up bonds ?
If I take that bond, https://www.boerse-frankfurt.de/bond/de000a161xw6-adler-real-estate-ag-2-5-16-21, why the price is so low ? It should be near 100.
PS : I am studying before investing, I ll invest if I fully understand what I am doing.
Thank you for your enlightment
Can you provide the prospectus of the bond so that we can know the terms?
Out of my mind, i could see two reasons why the bond is quoting at 12 cents on the EUR:
- either there has been an early partial redemption of the notional of the bond
- or the issuer of the bond has financial difficulties and the market believe that it is going to default.
But as long as we do not know what is the structure of the bond we will not be able to help you.
The company does not seem in a bad status. Their other bonds are near 100. The only difference is the bond mentioned above is a convertible bond.
Something off with your data provider. Probably “Listing unit : Pieces” - so you getting quotes in terms of piece of paper (13.7 EUR nominal each?), not % of nominal
In general credit markets are very efficient, you’re swimming with the sharks there. If it looks like there’s free money lying around it most likely isn’t
thanks for your advice. I ll be careful. My was to understand more about bonds and this specific case.
Yes, it seems to be 13.7 nominal as written in the Frankfurt börse link.