I added an update to my post from May 14, 2009 relating to Cramer's endorsement of Sallie Mae as his speculative stock of the year. I see some interest from the FeedJit widget in my discussion about SLM so I am going to copy part of that update into this new post:
"Cramer named Sallie Mae common shares as his speculative play for the year in tonight's Mad Money. Street While I have no intention of buying the common shares, his arguments did convince me to continue holding the exchange traded bond that I currently own, OSM, that pays interest tied to the CPI and matures in 2017 . . . . It closed on Friday at $11.5 with a $25 par value.
There is another CPI linked note from Sallie (SLM) with the symbol ISM which matures in 2018 with a 2.05% spread to CPI."
OBAMA SALLIE MAE & MY HOLDING OSM
OBAMA SALLIE MAE & MY HOLDING OSM
This is a link to a more recent post on my decision to keep OSM:
I am going to take OSM off a daily monitor and place it on a weekly monitor.
I would add that OSM is priced much lower than a similar floater from Prudential, which I do not own, that closed at $18.57. PFK
Pru is rated higher. And, Moody's just cut SLM's senior unsecured debt to junk at Ba1 from Baa2. Marke
A discussion about both OSM and PFK is contained in an earlier post: CPI FLoaters PFK AND OSM/ Warnings by Chip Companies/FDX
This is a link to an article in Seekingalpha about OSM: Seek Al
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