Q: The Colabor 6% debenture, GCL.DB.A , maturing in Oct 2021, is currently trading at 75% of par. The yield to maturity is approx 18%.
In order to benefit from this excellent YTM, the company “merely” has to stay solvent for the next 3-1/2 years.
Obviously there is risk here, but do you think that the chance of GCL’s survival until then is reasonable?
In order to benefit from this excellent YTM, the company “merely” has to stay solvent for the next 3-1/2 years.
Obviously there is risk here, but do you think that the chance of GCL’s survival until then is reasonable?