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Subject:  Re: Price Action & Volume on Edison Mission 2017 Date:  3/8/2011  12:17 PM
Author:  joelcorley Number:  32412 of 36853


You wrote, Not sure if you noticed, but these have dipped now $100 from relatively recent highs trading moments ago in the low $70's.


Anyone on these boards holding any Edison notes? I believe the second or so thread I started on these boards was about Edison notes in general. I believe there was one or two negatives that were presented without digging too deeply. I will revisit that thread as well.

No, I'd not noticed amid the overall up-trend of my accounts. Thanks for saying something. I need to track these a little more closely I suppose; but life has been a little busy lately.

I own 3 of the '17s and 5 of the '13s. When I bought the '17s, I thought they were selling at a deep discount because that was when a huge block of debt would come due, making it a necessity to refinance (or default) by then. Given the low price I'd paid (66.83), I figured I would recover most of my investment even in a default.

Current pricing places them with a YTM in the low 13% range. Assuming the market is operating normally, someone big must think the default risk is pretty serious to give up that kind of yield. Hopefully it's just a big investor having a reality check about the risk and not something more fundamental that they know about and we don't...

I figured the '13s were more secure and a default was unlikely before the bonds matured. I paid 85 for 5 of those. At one point they were fetching 105; but now they appear be back below par, which would mean they're now paying better than their 7.5% coupon...

If you find any news that might be behind the price decline, I'd appreciate hearing it; but at the moment I need to get back to work... :-)

- Joel
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