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Hi Arindam -

Let's talk about what I view as the riskiest bond in my portfolio. It's a bond for natural gas producer EQT that is scheduled to mature in October 2022, with CUSIP 26884LAE9.

It's currently BB rated and not profitable. However, it has around 0.54 debt to equity ratio, has EBITA well above its interest costs, and has a debt maturity schedule such that it has many bigger hurdles after my bond matures. In today's earnings release, it also mentioned that it extended its revolving credit line to 2023, which is after my bond matures. Is there a risk? yeah. The biggest risk is that if natural gas prices go down and stay down, it'll be hosed. On that front, I'm of the opinion that since natural gas is among the cleaner of the fossil fuels, its use isn't likely to be outlawed in the next year and a half.

Could I be wrong? Maybe. But I'm not losing sleep over it.

I don't just chase yields...

Regards,
-Chuck
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