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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: of 35400  
Subject: Re: Avaya Inc Bonds Date: 2/9/2012 8:02 PM
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Anyways if you have any real junky bonds on your watch you want to share, feel free.

Where to begin? Half my bond portfolio is ridiculously junky! I have bonds from Dynegy, which recently filed for Chap 11. I have newly-issued bonds from River Rock Entertainment, a California Indian Casino. The bonds I purchased were supposed to mature in Nov 2011, but there were some problems refinancing their debt and they couldn't afford to pay off their bondholders. In the end, they issued everybody new bonds which will mature in 2018; now to see if they can start paying the interest on the new bonds. I also have two positions in Edison Mission Energy rated Caa1/B-.

Most recently, I tried to resist my inclinations to be a hi-yield fiend by getting higher quality junk, in this case PHH Corporation bonds rated Ba2/BB-, yielding 9%+, and maturing in 2016.

In making a purchase, I've always avoided buying anything rated lower than B-, though sometimes the ratings for my bonds get downgraded after I buy them, as happened with Edison and my other follies.
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