PDL Biopharma 4% Due 2018 – Fixed Income

»  Fixed return prevails over equity

Essentially a 10 person led healthcare investment company, PDL biopharma makes money out of royalties and high interest rates leding to new healthcare ventures. My estimations give a good upside to equity but I believe it is a horse too rough to ride. The business model is vulnerable to steep falls – visible through significant Queen royalty expires – therefore convincing me that the notes due in February 2018 at 4% coupon offer a much safer respectable return. Trading at 94.50 cents to a dollar, the notes do make a good investment.