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|Subject: Re: NII Capital (NIHD) 2016 Bonds 10%||Date: 11/8/2013 4:48 AM|
|Author: howardgt||Number: 35094 of 35931|
< Wondering if anyone else is holding these >
I hold the 8.875’s of 19 and 7.625’s of 21, but I really can’t add anything to your comments about the company and it’s chances of surviving.
All the 3 NII issues seemed to be under heavy dumping today… as if someone expects another shoe to drop.
I prefer the 2019 and 2021 issues over the 2016 because mid/hi 50’s is much closer to an estimated 20% recovery (Moody’s LGD5 rating) than mid 70’s the 2016 are selling at. In addition, I don’t mind extending my duration when I get 20% YTM. But 20% YTM indicates a high likelihood of default, so I must factor this in.
According to my spreadsheet I show the following risk/reward ratios:
I bought my original position in the mid 70’s. After the recent earnings, I added the 2019 in the low 60’s. Today (yesterday) I added 2021 in the mid 50’s. I now have my basic 2% (of junk) position, so I won’t be buying anymore until I see some positive changes developing.
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