Dec. 31 at 7:31 PM
$RC Buying the 2029 bonds
$RCD.X here on tax loss selling dips. The bonds are fully covered by unencumbered assets right now which stand at 830 million and cash on hand of 150 million as well. I think management does in fact get the
$650 million in 2026 paid off which will start the recovery here.
To be clear, management isn't great, and I wouldn't own common or even preferred, but near 11% yield the 2029 bonds with an over 14% yield to maturity are a great buy currently.
I will be watching them closely but much like
$CCLDO at
$19 was very mispriced when I called it out, and even
$PBI bonds
$PBI.B were very mispriced at
$18.50 as I called them out as well, RCD is mispriced and will see closer to
$24 after the refinancing IMHO.
