The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments

URL:  http://boards.fool.com/not-terrible-for-a-6-year-or-so-redemption-but-30518244.aspx

Subject:  Re: Williams Clayton’s 7.75’s of  Date:  1/31/2013  5:19 PM
Author:  altstrat91 Number:  34742 of 35272

not terrible for a 6 year or so redemption but there is better out there right now surprisingly.

did you see Kemet earnings this AM? surprised allot of folks. some are conservatively calling bottom in their cycle. they completed a most impressive merger recently and the sky is the limit in their niche, the electronics space. been business for nearly a century now.

of course its not all roses, just look at their coupon. but classification wise, you could do allot worse on the debt side for sure.

cusip = 488360AF5
coupon = 10.5%
redemption = 5/1/2018
bond price in the $102 handle range, still gives a near 10% yield to worst.


also recently, the CFO of avaya gave a very transparent presentation regarding the future of the company. i might have the link somehwere still. avaya's ipo is still in the works for the future. its just a matter of when. i bought these hand over fist last year when they sank and traded down to the mid/lower $84's< and less.

but given how things are slim pickings now, if you really had to put some money to work, still worth a look here for risk adverse folks like myself. especially like the short term redemption on these. in reality, you are mainly putting on a credit risk trade here, as opposed to going with some bond 7-10 years out; you would have interest rate risk then as well.

cusip = 053499AE9
coupon = 9.75%
redemption = 11/1/2015
bond price in the $96 handle range, still trading at a discount to par.

avaya latest prelim earnings
http://finance.yahoo.com/news/avaya-announces-preliminary-fi...

one other little tidbit is that avaya just successfully put out some new debt that redeems in 2017.

http://www.reuters.com/article/2012/10/26/idUSWNA84682012102...

like i said, if that ipo gets the green light i am buying all i can under face value. but at the same point, i am carefully monitoring my current position, if the bonds slip back down to 10% discount premium, i will close out my entire lot and look to re-enter again at another point in time.

its amazing how allot of price action on specific bonds are cyclical. there are definitive times to buy and sell them over and over again over an 18> month period or cycle.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us