SENIOR DEBENTURE YIELDS
Here are details of the yields now obtainable on the senior debentures of the "Big Four " Argentine railways, together with the range of quotations over the past ten years :
Yield Price range B.A. Gt. Southern 4% Deb. B.A. Pacific 4% First Deb. B.A. Western 4% Deb. Central Argentine 4% Deb. ..
..
• • Current price 68 69 56 59 5 5 7 6 % s. d.
19 6 17 9 5 6 18 0 1928-37 High. Low.
90 47 87 40 884 44f 871 434
Of the stocks ranking behind these debentures I can only say that in present conditions they are distinctly speculative. At the same time I regard B. A. Gt. Southern 5 per cent. preference stock, at 42, as a good speculation at the price. The area served by this railway has been least affected by the poor weather conditions and its total receipts to date are still level with those of the corresponding period of the x936-37 financial year. Current receipts are falling below those of the preceding year, so that the results for the year ending June 3oth will probably show a moderate decline. It does not follow, however, that the decline will be sharp enough to affect the 5 per cent. preference dividend, which was covered in 1936-37 by a reasonable margin.
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