The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments

URL:  https://boards.fool.com/i-would-seriously-be-doing-cartwheels-in-my-front-29396334.aspx

Subject:  Re: Nortel Date:  7/5/2011  1:43 PM
Author:  ytm Number:  33019 of 36852

I would seriously be doing cartwheels in my front lawn right now if your particular outcome had been my particular outcome for some or any of my own previous high flying distressed debt speculative plays.

I am not sure exactly where your bonds are in the proverbial food chain, if they are senior or subordinated, secured or unsecured, etc. but I learned the hard way that just because you own a bond, does not entitle you to necessarily anything when it comes to bankruptcy proceedings and how it ultimately plays out.

Add to this mix the fact that you actually bought them at a price of collapse, so you are looking at a home run once in a lifetime type trade and your decision is a very easy one. Its not like you bought them years ago and paid face value for them and was looking at a devastating loss.

On the flip side of the coin, I have sold distressed bonds way too early as well leaving a small fortune on the table as I did with YRCW, so I can respect your perogative in exploring possibilities.

I am not privy to the scenarios that your bonds face. Is this 70something cents on the dollar an amount that is not going to change, now that they have secured the patent sale and can potentially move up from here or is that 70 cents on the dollar merely reflect trading price activity of a more or less illiquid supplied bond in the secondary marketplace? If you have access to one of the electronic virtual exchanges, I would suggest you check out the bid size on your bonds to get a better gauge. If this is something you can not do, let me know and I will find out for you.
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us