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Subject:  GE’s 6.1’s of ‘30 Date:  1/26/2013  2:33 PM
Author:  globalist2013 Number:  34726 of 35834

Like BAC, GE is calling in its bonds. This is the fourth GE position I’ll lose because they want to re-fi while interest-rates are still low. This was my trade. I bought GE’s 6.1’s of ’30 on 03/04/09 at 66.195, for an originally projected YTM of 9.9%. The call is 02/15/13 at 100, which will result in an achieved YTM of 18.5%. So, yeah, I’ll make a few bucks, but I’ll have the problem of putting that money back to work again.

Of interest, when these kinds of things happen, is wondering whether buying the debt, rather than the common, really was the better value play. Obviously, I can’t k