Subject: Re: Income from BH subsdiarie debt
That's generally correct. The utilities, BHE, BNSF debt is non-recourse.
However, BHFC debt (used by Clayton for manufactured home financing) is recourse debt. So it does usually trade at a lower yield.
BHFC 2043 debt trades at 5.336% (discount bond 88.032; 4.3% coupon).
It does seem like the parent company guarantee isn't worth more than 30-50 bps.