NAVI - Navient: The Exchange Traded Senior Notes Once Again Look Appealing
In early January, we wrote about the relatively unattractive attributes of the senior notes of Navient (NAVI), specifically, the exchange traded Navient Senior Notes (JSM) due December 15, 2043. The essence of our note was that given the senior notes’ quotation approaching their redemption price and the resulting relatively modest effective yield of just over 6.0%, the senior notes had become unattractive given the associated risks, including the potential for higher longer-term interest rates, industry challenges, and regulatory/political risks. The yield was not, in our view, commensurate with these risks, especially