Gran Colombia Gold notes | Value Investing News

Gran Colombia Gold notes

  • Gold today is roughly US$1,410 an ounce, so I calculate that noteholders will receive an extra 0.79% premium on their notes this quarter, assuming that is the average sale price.
  • At par and present gold values, right now investors are looking at about a 13% YTM on senior secured debt, but this will fluctuate depending on gold and 3 year bond yield pricing.
  • Unfortunately for people interested in getting in, the notes have been trading lately above par, which will reduce the yield to maturity.
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