![]() ![]() It’s also important to note that the company holds more than $2 billion in loan loss reserves against nearly $20 billion in loans. The company’s balance sheet is relatively uneventful as OneMain still holds slightly more than $3 billion in shareholder equity and similar leverage compared to the end of 2021. ![]() OneMain’s financial performance indicates that management is taking prudent steps to protect the company from rising interest rates. Management can change the dividend at any time. Bonds are senior to common shares in that management cannot opt to not pay interest on debt or full principal at maturity without a bankruptcy. While value and income investors may be attracted to OneMain shares due to their recent decline combined with their now 12% dividend yield, investors may find high income and decent value through an investment in OneMain’s bonds.įor example, OneMain’s March 2026 maturing debt, which pays a 7.125% semi-annual coupon, is priced at under 92 cents on the dollar, yielding just under 10 percent to maturity. Over the last 52 weeks, the shares are down 45%. The recent surge in interest rates has sent shares of personal loans lender OneMain Holdings ( NYSE: OMF) plunging. ![]()
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