I was positioning myself to buy some Aviva 6.125pct 2036 at around 120 and Paragon 6.125 pct 2022 at around106 then saw announcements/speculation that both are looking to possibly/almost certainly re-finance ' expensive bonds' via other means/share buy backs and from internal banking ( from Paragon through their bank ). To date i have only bought ORB securities at issue and not so far dabbled in the second hand after market so the question is should i be highly concerned by these announcements or will things work their way through and have no major concerns. My fear is with both trading at a premium a capital loss could be a possibility given both trade above par. The YTM of around 4.50 pct for both companies could be wiped out in a flash if they are redeemed early an at par. Interestingly neither security has had any real price reaction today so maybe i am missing the point somewhere. ?
Any comments welcome and i know Tesco recently did something similar so guess that should be a lead-did investors lose out if they bought in the after market at a premium. ?
Thanks in advance to all who take their time to reply.