Wednesday, April 05, 2006

Divergence between CBH and CBHG

Primer on my investment outlook

CBHG are 9.5% conv notes, and can be converted to CBH shares on a 1-to-1 basis. Ideally prices should track each other, and CBHG should be at a premium due to its yield. Recently, there has been a divergence and CBHG is quoting 30% cheaper than CBH. Strange!!


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