3 Reasons to press for the bond
1) Current Astrea Bonds Trading at a Yield to Maturity less than 3%
As such, the 3% bond should be traded at a premium and should open above $1. Which means anyone who wishes to punt should not be underwater on day 1.
2) Current Retail Bonds are also trading below 3% yield to maturity
The best comparison would be to compare with the SIA Retail bonds. Surprisingly for a company that continues to be unprofitable, it is trading at a yield to maturity that is below the ASTLC 3.85%. Although one can argue that its maturity its in 2024 and therefore have a shorter timeframe, the ASTLC 3.85% also has a Scheduled Call Date of 20 June 2024. As such should it be called in 2024 when it meets the conditions. The XIRR of 2.89% without counting any fees looks attractive as well.
3) PE Funds perform well under stimulation and from March 2020 to November 2020...