Could this happen at some point if the 2009 bond continues to rise?
"As bond prices trade higher, due to their popularity, the effective yield for a given bond will decrease because its face value at maturity is fixed. As effective bond yields decline further, bond prices top out and stocks begin to look more attractive, although at a higher risk".
The higher bond prices are a reflection of sentiment in Chemtura, however at some point I would imagine that the traders who have been investing in Chemtura strictly from the bond side of things would eventually turn their focus towards Chemtura shares, when the 2009 bond reaches a certain point above par.
I don't know whether this applies here, but at some point I would imagine that the 2009 bond price will give the PPS a big pop, as money that was going into the bonds is diverted to the shares instead.
"I know I'm a day late and a dollar short", and I'm sure CMM and Floyd will point that out.
