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Not sure if you noticed, but these have dipped now $100 from relatively recent highs trading moments ago in the low $70's.

Someone just bought a $1000000 block. There has been some enormous blocks hitting the tape the last couple days, including several $1MM+ ones that were dealer transactions. And another $1MM+ late yesterday after the market close in which a dealer sold to a customer.

I will have to check out the shorter term Edisson notes to see if there is simlar action.

Anyone on these boards holding any Edison notes? I believe the second or so thread I started on these boards was about Edison notes in general. I believe there was one or two negatives that were presented without digging too deeply. I will revisit that thread as well.
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ytm,

You wrote, Not sure if you noticed, but these have dipped now $100 from relatively recent highs trading moments ago in the low $70's.

...

Anyone on these boards holding any Edison notes? I believe the second or so thread I started on these boards was about Edison notes in general. I believe there was one or two negatives that were presented without digging too deeply. I will revisit that thread as well.


No, I'd not noticed amid the overall up-trend of my accounts. Thanks for saying something. I need to track these a little more closely I suppose; but life has been a little busy lately.

I own 3 of the '17s and 5 of the '13s. When I bought the '17s, I thought they were selling at a deep discount because that was when a huge block of debt would come due, making it a necessity to refinance (or default) by then. Given the low price I'd paid (66.83), I figured I would recover most of my investment even in a default.

Current pricing places them with a YTM in the low 13% range. Assuming the market is operating normally, someone big must think the default risk is pretty serious to give up that kind of yield. Hopefully it's just a big investor having a reality check about the risk and not something more fundamental that they know about and we don't...

I figured the '13s were more secure and a default was unlikely before the bonds matured. I paid 85 for 5 of those. At one point they were fetching 105; but now they appear be back below par, which would mean they're now paying better than their 7.5% coupon...

If you find any news that might be behind the price decline, I'd appreciate hearing it; but at the moment I need to get back to work... :-)

- Joel
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Will do Joel.

I have 4 of the 2017's & 4 of the 2016's.

My due diligence on these was a bit premature. When I looked into who I thought was backing these bonds, Edison International (EIX) -although the debt to cash equity ratio was a bit much for me, I liked their huge revenue stream and double digit operating & profit margins. But I still have to look into exactly how this debt was acquired, logistics, etc.

I basically bought my notes awhile back before they had their recent price upswing. I was going to add some more 2017's but there is a pretty decent seller right now out there.

But prices have been all over the place today. Between $73ish to an $85000 buyer just now in the $78 handle. It really pays to have a good broker dealer and know whats going on in the marketplace. A $50 difference in less than a couple hours is something to avoid for certain if you can.
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I have a position in their 2017's and their 2027's. Doing a quick search, I see nothing that justifies the drop. Hopefully, it was just some big bondholder who needed the money. I might consider adding if I didn't already have two positions.
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folgore,

You wrote, I have a position in their 2017's and their 2027's. Doing a quick search, I see nothing that justifies the drop. Hopefully, it was just some big bondholder who needed the money. I might consider adding if I didn't already have two positions.

I wonder if it's a major investor spooked by the Dynegy bankruptcy?

- Joel
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