No. of Recommendations: 2
I actually finally saw my trade executed today for some Sears Acceptance Corp(a wholly owned subsidiary of SHLD) Exchange Traded Debt.

In 2005, Sears tendered and bought back 50% </> of two such security - both $25 Liq Pref paying 7% and 7.4% ($1.75 & $1.85). The day later they delisted these securities due to reporting requirements.

Sears holding generates quite a bit of cash flow and the debt is rated Ba1 for what that is worth, but it now trades on the OTC as a security with no market maker - tough to buy and sell as no bid or asks are posted. But I picked up shares today for $5. $5 with a coupon/dividend of $1.85 per year as long as Sears Holding doesn't vanish from the face of the earth... almost for ever - 2043 or until Sears has more cash than they know what to do with and decide to buy back the debt again.

36% yield until I get "my" principal back.
plus a lump sum of at least 393% when It matures or is called.

I've built a small portion of my portfolio in the past few weeks in several of these severally depressed debt / preferreds paying 30-50% yields with the though that even if have the companies vanish, I still would be getting an amazing yield.

Time will tell if this pans out for me or not.

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