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Subject:  Smyrna GA Hosp Auth 6’s of ‘28 Date:  1/27/2013  2:16 PM
Author:  globalist2013 Number:  34728 of 35593

Back in the days when I was trying to learn my craft and had just a single account at TD Waterhouse --remember them? -- I was cold-called by a bond broker from a boutique. I don’t know how he got my name. But we got to talking, and he pitched Ultrapetrol’s bonds to me. I didn’t have any exposure. So I said I’d bite for five. So he did the trade, and I sent him the money to properly open an account. Shortly thereafter, the bonds were called, and I was out with a profit. So the next time he called, I was willing to bite again, and the account grew. Whenever he’d call, we’d chat a bit. He’d make his pitch, and I’d buy.

Predictably, pretty soon he was putting me into stuff I shouldn’t have been buying, like “structured products”. But I was still naïve about bonds, and I bought. But he also put me into other stuff, like munis. One of his pitches was for Smyra GA Hosp Auth’s 1st MTG 6’s of ’28, a new-issue rev, with a min-purchase of ten. For a while, things went along fine. The price stayed near my entry point, and the coupons were regularly paid. But when the 2008-2009 correction came, I got whacked hard on the position, with prices dropping down to mid-80’s (if I’m remembering right), and I hugely regretted buying on no more due-diligence than a broker's word.