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Mr. Whitman bought the bonds with a yield to maturity of 25percentt.
Bonds offered too low a yield to produce exciting long-term returns.
The mortgage repayments made by borrowers then provided a yield to the investor, so long as the borrower kept paying.
The convertibles, with a 3.75percentt coupon due July 2006, have a yield to maturity of about 8percentt.
The bonds last traded on Jan . 29at 48 cents on the dollar, giving them a yield to maturity of 18.54 percent.
A revenue bond for a United Airlines project at O'Hare International Airport in Chicago fell from a price of 103 cents on the dollar and a yield to maturity of 6.025 percent on Sept. 10 to 45 cents on the dollar with a yield to maturity of 16.4percentt as of Tuesday, said Patrick P. Coyne, co-manager of the Delaware fund.
Similar(27)
These will be priced on a yield-to-call basis, which is higher than CD rates.
They trade at around 88 for a yield-to-maturity of 14.1%.
The company's 12.25% senior notes due in 2000 are trading at 88, a yield-to-maturity of 16.9%.
The average holding in Cournoyer's fund has a yield-to-maturity of 19%, versus 13% for EMBI+.
For a trade of at least ten bonds, the offer was at a price of 105.89 with a yield-to-worst call of 5.83%.
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