I see companies like Consol Energy (CNX), that have a bond with a coupon 8,25%, Maturity 2020, and trades about 84 USD. I feel that is a excellent deal, but i dont know the real risks involved.
I know the energy sector is in real pain and short term i don t see a real recovery. However, CNX it´s a good company and i dont see any chance of bankrupt soon. Famous investor David Einhorn bouhght the stock recently. Can y explain me the risks envolved and how it works. For example can they cancel the coupon without deffault? What means unsecured bond? How i see if is senior?
Can anybody explain ?
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