say, well, we're not getting paid enough for that level of risk and vice versa. We're getting paid very handsomely for this level of risk based on what the market thinks. So yeah, what I look for cash flow is of the utmost importance, very similar to what I look for in dividends, a balance sheet. I want to know that there is some cash that they're not so heavily in debt that they can't make their interest payments. And most importantly, or I should say as importantly, I want to see where the bond that I'm interested in falls as far as their maturity schedule. So if I'm looking at a 2024 bond, but they have a ton of bonds maturing in 23, and that means they're going to probably have to raise more money, sell more bonds to pay off the 24s, I'm not interested. I want to be first in line for that and let the bond investors behind me a few years down the road worry about how they're going to get paid. So I really try to be kind of at the head of the line or if I can't be the first maturity, (18/35)
You are viewing a single comment's thread from: