2024-02-02 02:29:53 ET
Summary
- Medical Properties Trust bonds offer attractive yields and appear undervalued based on the company's book value of equity.
- However, further analysis reveals significant contractual commitments and liquidity concerns for the company, raising doubts about the attractiveness of the bonds.
- Investors would need to believe in overly generous scenarios regarding the company's troubled assets or new debt issuance to justify the risk of investing in the bonds.
- And the returns just aren't worth taking on those risks.
Editor's note: Seeking Alpha is proud to welcome Sinai Partners as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » ...
Read the full article on Seeking Alpha
For further details see:
Medical Properties Trust: Bonds Attractive At Face Value, But Reward Doesn't Justify Risk