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No. of Recommendations: 1

I'd disagree that PGE&E's debt is benefiting from convexity in line the upper-tier issuers. From the getgo, the big boys knew they would be made whole, because they were sitting at the BK table to ensure it.

If you do trade out of your position, what will you replace it with? You saw the news about the recent 2-yr auction, right? The Fed doesn't intend to take interest rates to zero. They already have. But with PG&E's debt, you're at least being paid to accept its risks.

My suggestion? Track its price and hold tight as long it stays steady.
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