The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments


Subject:  Re: TXU Bonds Date:  11/7/2013  8:08 PM
Author:  joelcorley Number:  35093 of 36686


You wrote, Does anyone hold any of the TXU bonds? Did anyone receive the payment that was due last friday?

Yes. I held two of the Texas Competitive Electric bonds that were due Friday. They paid me $102.50 in interest and I sold them for $122.85 net.

I've held these things for quite some time. I paid $1,403.67 (net) in May '10; I've collected 7 coupons totaling $717.50 for a total received of $840.35. So I lost $563.32 (cumulative return of -40%) on the trade over just under 42 months.

I actually sold the bonds because the price popped back up and I was doubtful about the reasons for it. E*Trade had been offering <2/ea. After I learned they were planning to make the dividend payment just to buy themselves a few more months, I sold.

It was only after the sale that I found I'd been paid. I wouldn't trust that payment though. A BK judge could order it reversed.

- Joel
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us