UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35387  
Subject: Re: General Motors 8,375%: help? Date: 9/13/2007 5:02 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
and it says secondary market BUT it also says that it is not callable

i guess that means: no go.

indeed, i was thinking that if rates went down they would be better off buying it back but apparently this cannot happen!


I don't think Paul was suggesting being callable was a good thing. If conditions for GM improve enough that they are in a position to call in debt securities, a non-callable bond would be quite salable on the open market (for a commission, of course).

Here's one way of thinking of the risk (thanks to our old friend Charlie). You would be getting about 5% per year more for this than a 5% CD (assuming you rolled over the CD year after year). So basically you are betting on GM lasting 20 years.

As Charlie always said about junk, you really need to do the research and not guess. He thought GM was too unpredictable to weigh the risks properly, though that was a while bck.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Netflix Riles Investors
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement