High Yield-Bonds

High yield bonds are debt of people selling bonds to inventors. If you buy IBM bonds, you borrow money ($ 1000) from IBM instead of lending it to the bank. As with banks, IBM will be billed against principal repayment (10 years later) against interest and loan expiration dates. Because the bank evaluates the company as a high risk company, the company does not borrow money from the bank. Therefore, the bank's funds are very tight. High yield bond investment relies on credit analysis as it focuses on issuer fundamentals and 'bottom up' process.

As a bond expert, I pay special attention to high yield bonds. I am at Netflix, Inc. (NFLX) issued high yield bonds with strong interest. Netflix has seven unresolved issues that mature from 2021 to 2028. As expected, long-term problems lead to improved yields. In my opinion, are these bonds purchased? This is a difficult question to answer, as Netflix presents a very rare case in credit analysis. On the other hand, these bonds seem to be "dunk". After all, Netflix has a market capitalization of 158 billion dollars and is one of the famous "FANG" shares that has supported Nasdaq listing in the past few years. What do bond investors need to know? Does anyone truly believe that Netflix does not repay the debt and repay it, but bankruptcy?

Bonds are usually classified into two subcategories: investment grade and high yield (or junk bonds). The difference of 2 depends on the credit rating underlying the bond. What do you mean? This means that there is a third party company that evaluates the possibility that the company actually believes that they will pay their full responsibility and the possibility of their commitment. If the rating is below a certain level, the bond is called a high yield bond. As the name suggests, bonds marked as high yield bonds pay higher interest rates than investment grade bonds to compensate for the risk increase for investors.

On the issue of high yield bonds on April 28, 2005, CGG Americas Inc. issued warranties to creditors and under the guarantee they promised to repay the bonds and loans to your company. The guaranteed amount is MUSD 165 plus interest, fee and related fee. Regarding the refinancing of subsidiary Veritas acquisition, Volnay Acquisition Co. I and Volnay Acquisition Co. II issued warranties guaranteeing payment of goods and repayment of loans acquired in April 2005, April 2006 and 2007 In February, the total amount was MUSD 530.

This is a free English translation of the report published in French and is provided only to English speaking users. Please read and interpret this report according to French law and professional standards applied in France.