Summary
- Athene Holding’s baby bond offers a 7.25% coupon, investment-grade ratings, and trades near par, making it an attractive income opportunity.
- ATHS stands out among peers with a higher yield to worst and a reset-rate structure that limits duration risk after the 2029 call date.
- Compared to similar OTC bonds, ATHS provides a yield differential of up to 2.7%, suggesting potential price appreciation of 4-8%.
- With a stable issuer, strong credit ratings, and a likely coupon increase post-2029, ATHS balances security and attractive returns for investors.
BibleArtLibrary/iStock via Getty Images
In today’s analysis, we present you with an attractive opportunity - the ([ATHS](https://seekin…
Summary
- Athene Holding’s baby bond offers a 7.25% coupon, investment-grade ratings, and trades near par, making it an attractive income opportunity.
- ATHS stands out among peers with a higher yield to worst and a reset-rate structure that limits duration risk after the 2029 call date.
- Compared to similar OTC bonds, ATHS provides a yield differential of up to 2.7%, suggesting potential price appreciation of 4-8%.
- With a stable issuer, strong credit ratings, and a likely coupon increase post-2029, ATHS balances security and attractive returns for investors.
BibleArtLibrary/iStock via Getty Images
In today’s analysis, we present you with an attractive opportunity - the (ATHS) baby bond issued by Athene Holding Ltd., a subsidiary of Apollo Global Management, Inc. (APO). Stay tuned for more information
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**Analyst’s Disclosure:**I/we have a beneficial long position in the shares of ATHS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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