No. of Recommendations: 1
So we all basically do the same kinds of scans and for the most part are probably looking at the same bonds. I like throwing around specific names and real world examples especially in a time like this when it seems yields have really dried up. Only way you are going to get north of 7.5%+ yield right now is taking on a riskier profile or much longer time frame til redemption. I prefer to stick with shorter term maturities.

As I pointed out awhile back, a great way to play natural gas was buying bonds in the bigger names like NRG, Exco, NKA, etc. All had yields pushing double digits or better at the time when all the awareness was going viral that natural gas price just kept free falling.

Now it seems coal is in the proverbial "getting pounded" spotlight. One of medium sized names in the space, be it they are not big either with a present market cap in the 1/2 billion range, is Patriot Coal. Debt to cash ratio is by no means terrible. Its a matter of what is happening in the sector specifically relating to future cash flows, prospective revs, costs erosion, profit margins, etc.

Its hard to believe that at the peak of the past 52 week high, Patriot Coal market cap was actually nearly $2.5B. The stock price has really taken a beating. Is this a permanent trend that will continue til its run into the abyss?

Interesting the bonds have been late in reacting. Pretty much staying pat for the near entire time as the equity side eroded. But recently the bonds in the last week took a huge nose dive freefalling from $90 down to $80 this AM.

Redemption = 2018
CUSIP = 70336TAC8
Coupon = 8.25%
Yield = 13%+

Any takers or holders here. Any thoughts from anyone appreciated.
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