Friday, February 20, 2009

Debt Payments

I just noticed that a majority of the corporate bonds that I own have a debt payment in March/April and September/October. I am not sure why that is so, but it is something I noticed. The reason I bring this up is because that means there will be a lot of companies that won't have as much cash in March as they did when they make this payment. Of course their liabilities will be reduced, but having cash is probably better. I don't know what kind of effect it will have on their stock prices but I doubt it is good.

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