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My subject line pretty much says it all! A couple of weeks ago, United Refining made a tender offer. I basically ignored it, hoping that I would be able to ride this one to maturity. Given that the company already has the right to call the bonds as of the end of this month, my assumption is they're not ready to call them all yet, so I may be able to ride this one awhile longer.

Out of the blue today, however, my 5-bond position in Verso Paper was called early. (Maturity was August 2014.)The coupon was 9.12%, but when I bought it in Fall 2009, it was selling at something like $760 each, so I was yielding well above 10%. Oh well, one year of interest and it was redeemed at a small premium to par, so I did okay.

I also received a tender offer for my position in Clayton Williams via E*trade. I intend to ignore that, but I can't help but figure that the days of my high yield bond ladder are numbered! And doing a quick bond search via E*trade, junk is really pricey now-a-days. When I started buying bonds in a big way in early 2009, I focused on low end investiment grade, but gradually descended to junk, though I always tried to stay at "B- or above" while avoiding "CCC and lower."

I'm now going to have to modify my bond-buying strategy or start focusing on high yield stocks, REIT, MLP's, and preferreds. Oh while it lasted!
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