Alpha bank, us treasury bond 9.5 % 10 year

[steelepulse]

A Russian friend of mine who does very well pointed me in the direction of Alpha Bank US treasury bond. It pays 6% for one year, or 9.5% over 10 years. Need 200K usd to get in and the story behind this bank is that one of the richest Russians is behind it and he and Putin are OK friends, not great, not bad. Yield seems extremely high to me. BB rated seems rather questionable, but 6% for short terms seems quite good.

[tonray]

This has nothing to do with the US Treasury. Misleading post !!!! .US Treasury securities are rated AA+ or AAA never BB.

[NeverSure]

Anyone paying 6% in this environment is sketchy at best.

[steelepulse]

This has nothing to do with the US Treasury. Misleading post !!!! .US Treasury securities are rated AA+ or AAA never BB.

That's what I thought also, but my friends says indeed us treasury. Waiting for more info from his bankers before I go any further. This particular bond is bb, but supposedly they primarily deal is us treasury. Anyway, seems too good to be true. No way I would do a 10 year, but my friend is already in for 10.

[Naam]

This has nothing to do with the US Treasury. Misleading post !!!! .US Treasury securities are rated AA+ or AAA never BB.

That's what I thought also, but my friends says indeed us treasury. Waiting for more info from his bankers before I go any further. This particular bond is bb, but supposedly they primarily deal is us treasury. Anyway, seems too good to be true. No way I would do a 10 year, but my friend is already in for 10.

your friend and you got it completely wrong and the reference "US Treasury" in context with "Alfa Bank debt" is

the same goes for "doing a 10 year". the bond of which you posted a Bloomie screenshot can be bought in the morning at 09.30 and sold, if one so desires, at 09.45

rating BB? do you know what "subordinated" means?

this lesson is free of charge

Edited February 6, 2016 by Naam

[Naam]

This has nothing to do with the US Treasury. Misleading post !!!! .US Treasury securities are rated AA+ or AAA never BB.

That's what I thought also, but my friends says indeed us treasury. Waiting for more info from his bankers before I go any further. This particular bond is bb, but supposedly they primarily deal is us treasury. Anyway, seems too good to be true. No way I would do a 10 year, but my friend is already in for 10.

Steelepulse,

Alfa Bank's (the debtor) rating is BB. but this rating does not apply to a "sub" which means interest is not paid if the debtor makes balance sheet losses and does not pay any dividend on its shares. conditions on "subs" vary, from a rather friendly "interest cumulative" to a devastating zero interest AND a write-down of the nominal bond value.

if you have any questions, please ask.

note: i am just stating facts without judging the quality of this bond.

[steelepulse]

This has nothing to do with the US Treasury. Misleading post !!!! .US Treasury securities are rated AA+ or AAA never BB.

That's what I thought also, but my friends says indeed us treasury. Waiting for more info from his bankers before I go any further. This particular bond is bb, but supposedly they primarily deal is us treasury. Anyway, seems too good to be true. No way I would do a 10 year, but my friend is already in for 10.

Steelepulse,

Alfa Bank's (the debtor) rating is BB. but this rating does not apply to a "sub" which means interest is not paid if the debtor makes balance sheet losses and does not pay any dividend on its shares. conditions on "subs" vary, from a rather friendly "interest cumulative" to a devastating zero interest AND a write-down of the nominal bond value.

if you have any questions, please ask.

note: i am just stating facts without judging the quality of this bond.

Thanks. I've never really looked into bonds, but I've learned a nice little piece of information thanks, Naam.

[Naam]

Thanks. I've never really looked into bonds, but I've learned a nice little piece of information thanks, Naam.

i'm happy that i was able to assist which -by the way- was a piece of cake because i invest in subordinated bonds since years

[tonray]

Just as a side note....the fact that a wealthy Russian who is friends with Putin is behind the bank is certainly not a positive in my view.

[Langsuan Man]

The minute the word Russian was mentioned I moved on

[Naam]

The minute the word Russian was mentioned I moved on

that's a matter of perspective. during the last 26 years there was hardly any period when i did not have any Russian assets in my portfolio. but then... to each his own.

[JMWPACIFIC]

This has nothing to do with the US Treasury. Misleading post !!!! .US Treasury securities are rated AA+ or AAA never BB.

That's what I thought also, but my friends says indeed us treasury. Waiting for more info from his bankers before I go any further. This particular bond is bb, but supposedly they primarily deal is us treasury. Anyway, seems too good to be true. No way I would do a 10 year, but my friend is already in for 10.

Don't be fooled by the mumbo jumbo your "friend" gives you. This is not a US Treasury Bond---no way!!!

[Langsuan Man]

The minute the word Russian was mentioned I moved on

that's a matter of perspective. during the last 26 years there was hardly any period when i did not have any Russian assets in my portfolio. but then... to each his own.

How about this present period ?

And how are they doing ?

[Naam]

The minute the word Russian was mentioned I moved on

that's a matter of perspective. during the last 26 years there was hardly any period when i did not have any Russian assets in my portfolio. but then... to each his own.

How about this present period ?

And how are they doing ?

[Naam]

here's the OP's "US Treasury"

[tonray]

The credit rating agencies have Alfa bank itself on a credit outlook: negative . Just good to be informed.

[Naam]

The credit rating agencies have Alfa bank itself on a credit outlook: negative . Just good to be informed.

no risk, no reward. as simple as that.

[tonray]

The credit rating agencies have Alfa bank itself on a credit outlook: negative . Just good to be informed.

no risk, no reward. as simple as that.

Very true...the biggest risk is the overt misrepresentation in the original post.....nothing could be further than the truth about this being affiliated in any way with the US Treasury