The share price of Gulf Keystone (GKP) is driven by private investors. The bond price is driven by more informed individuals and it is now screaming out JUNK!
Two days ago the October 2017 6.25% bonds were trading at 88p. Today they are trading at 75p. That means that implied yield to maturity is c15%.. I.e. if you buy these bonds in the secondary market you will get an annual return (assuming that Gulf can repay) of 15% per annum. That is a junk bond type return.
Now ask yourself
Filed under: