Unum Group is a publicly-traded insurance company that offers a range of financial protection products and services for individuals, businesses, and organizations. The company was founded in 1848 and is headquartered in Chattanooga, Tennessee.
The security UNMA is a junior subordinated debt security issued by Unum Group, with a coupon rate of 6.250%. Junior subordinated debt is a type of debt that is lower in priority than other forms of debt in the event of a default. This means that if Unum were to default on its debt obligations, holders of UNMA would only receive payment after other creditors had been paid.
As a fixed income security, the value of UNMA is primarily driven by changes in interest rates. When interest rates rise, the price of fixed income securities like UNMA typically falls, as investors demand a higher yield to compensate for the higher level of risk. Conversely, when interest rates fall, the price of fixed income securities generally rises, as investors are willing to accept a lower yield in order to invest in a relatively safe asset.
It is important to note that investing in junior subordinated debt securities like UNMA carries a higher level of risk than investing in other forms of debt, due to their lower priority in the event of default. Additionally, the price of UNMA may be impacted by other factors specific to Unum Group, such as changes in the company's financial performance or credit rating. Investors should carefully consider their investment objectives and risk tolerance before investing in UNMA or any other security.
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