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No. of Recommendations: 3

With all of the debt being "restructured" I opined that one should not buy Calpine stock, but look into the bonds. Got the stock part right.

Called a broker I used to use a lot and asked to buy "the most senior debt". Put in an order to buy the next time they drop. Got them at 42 (cents on the dollar).

Now I had done this successfully with several other companies in the past.

They are the most senior bonds all right. Problem is there was more senior debt, allegedly not available to the public. So I got one interest payment, and am sitting on these things that no one is sure what they are worth, currently about 30.


1. I'll continue to buy the debt, not bonds, of troubled companies.

2. When a story is as complicated as Calpine, don't buy anything.

3. It wouldn't have taken that long to double check the broker's advice -- I would have either caught the mistake or decided it was too much trouble to figure out, because...

4. There are always thousands of other companies to invest in.

Happy New Year ;-)

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