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Author: ytm One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35244  
Subject: AGF 2012 Bonds unique opportunity Date: 2/13/2012 10:29 AM
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So this is interesting. American General Finance that was acquired by AIG in 2001, previously bonds were rated investment grade, more recently were indirectly acquired in 2010 by Fortress Investment Group and currently rated B3/CCC.

BTW Now AGF changed name = Springleaf
http://www.springleaffinancial.com/about-us/history.html

They have a bunch of 2012 series notes with 5%ish coupons. However their bonds are selling anywhere between 5%-7.5% under par. That would give quite a hefty annualized yield.

Here is one specific example. April 2012 redemption, CUSIp = 02635PTB9. Trading @ $95 handle with a 4.875% coupon.

At one point when Fortress Investment Group too over, there was concern they would reorg the debt and bond holders would have to settle.

So wondering if these are on anyone's radar or if holding.
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Author: ytm One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33656 of 35244
Subject: Re: AGF 2012 Bonds unique opportunity Date: 2/13/2012 10:49 AM
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Well this explains why all their 2012 bonds series are trading at this discount:

http://www.reuters.com/article/2012/02/03/idUSWNA94512012020...

I count 9 different bond floast redeeming this year.

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Author: folgore Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33659 of 35244
Subject: Re: AGF 2012 Bonds unique opportunity Date: 2/13/2012 2:27 PM
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I have some AGF bonds that mature in 2015. The coupon is for 6%, but I bought them at .72, so my effective yield is more than 10%. Despite the low ratings, I figured three years wasn't too risky. I could be wrong though...

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Author: ytm One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33660 of 35244
Subject: Re: AGF 2012 Bonds unique opportunity Date: 2/13/2012 5:11 PM
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Thanks for sharing in this and that other thread some of your plays folgore. I had some Edison Mission bonds awhile back but sold out of them.

Have you checked out GFI Group bonds? Stock ticker = GFIG ? Rate BBB-. Cusip = 361652AA8 & selling 6% under par.

Also MBIA bonds, stock ticker MBI. Lots developing there with a BoA settlement. Shortest term bond though is a 10 year note with a 10% yield. CUSIP = 55262CAH3. Selling 24%ish under par.

Lastly Venoco bonds, stock ticker VQ, cusip = 92275PAF6, 2019 redemption selling 11% under par. 11%+ yield on this one. The CEO is in the midst of trying to take the company private/buyout. They have a ton of proven oil reserves. The potential risk here is similar to Tenneco/Pactiv/Reynolds Group in the form of a LBO possibly.

Have you checked out any natural gas pure play bonds like Exco Resources, Comstock Resources, or NRG ?

What about coal? Getting pounded. Was watching Westmoreland Coal & Patriot Coal as well, both shorter term bond redemptions on these as well.

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Author: brewer12345 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33662 of 35244
Subject: Re: AGF 2012 Bonds unique opportunity Date: 2/13/2012 5:52 PM
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If you want coal exposure, wait until people freak out about the better companies who are not heavily based in Appalachian underground mining to do your buying. Dealing with the Appalachian producers is asking for a lot of pain.

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