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Dan, if you like such investments, take a look at US Timberland (TIMBZ traded on NASDQ with junk bonds listed on NYSE).

They are in deep do do. They have timber assets to cover the bond payments but must sell timber faster than sustainable to cover the interest payments on the bonds. Bond holders have the assets encumbered. Unit holders have gotten nothing since a year or so ago.

This semi's interest payments were due two weeks ago. They missed them. They promised to pay within the grace period. Today was the last day--else they are in default. (The only info I can find is on the Yahoo message boards, but Salomon says they were to pay today.)

I haven't looked at quotes on these bonds recently, but I suspect you can buy them real cheap. Bond owners are likely to own the common stock soon unless they pay up. But you talk about risk!! (Will management divert the funds before they pay bond honders? That would be nasty, but hey, this is Wall Street. What do you expect?)

Wish me luck.
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