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I think this is very unique. Any Tenneco bond holders here?? These bonds were investment grade quality if memory serves correctly. Than Pactiv took over & the credit rating dropped & then Reynolds Group took out Pactiv & credit rating drops yet again.

Today the 2025's 7.95% coupon can be bought in upper $79 handle & if you are selling, will get mid/lower $70's.

The 2027's 8.375% coupon can be bought at $80 handle. THere is also a 2017 float with a whopping 8.125% coupon selling @ $94 handle.

I am a big fan of this product space. Wondering if anyone out here is accumulating and/or also watching these particular bonds. The 2017's look appealing here.
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ytm,

You wrote, I think this is very unique. Any Tenneco bond holders here?? These bonds were investment grade quality if memory serves correctly. Than Pactiv took over & the credit rating dropped & then Reynolds Group took out Pactiv & credit rating drops yet again.

Today the 2025's 7.95% coupon can be bought in upper $79 handle & if you are selling, will get mid/lower $70's.

The 2027's 8.375% coupon can be bought at $80 handle. THere is also a 2017 float with a whopping 8.125% coupon selling @ $94 handle.

I am a big fan of this product space. Wondering if anyone out here is accumulating and/or also watching these particular bonds. The 2017's look appealing here.


Interesting. I had Tenneco bonds on my short list back in 2009, but never bought. I don't have a great reason for not buying them. I did most of my shopping in the preferred space back then and only purchased a few regular corporate bonds.

I've not been doing much trolling for bonds lately, but I have some cash sitting around. Some of my non-financial preferreds have been called, so something like this might be an attractive diversification. It might be interesting to analyze the trade and maybe pick up a couple.

Thanks,
- Joel
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I have five of the 2025's which I bought for 85 while Etrade says the value is 77. With Moody's rating it Caa1, I probably won't be adding more, particularly with "less junky" alternatives becoming available. I just bought a second batch of Genworth rated BBB -- just shy of investment grade -- and yielding 9+%. I don't see the bargains we had in late 2008 or early 2009, but reasonable options can be found.
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Sure thing Joel. I greatly appreciate the DD you have brought in the past with respect to those pfds as well. I have a few watch lists running including all of the Lehman 3rd party stuff, ETD's, structured products, etc. Similar to the price action last week as you obviously know in the pfds area, we are starting to see some shorter term corp notes dipping under par now that have not been in this price range in nearly 18 months. I know some folks don't care whether the bond is over par or not; but because I have such a huge carry over loss, I really do not want to add yet more capital losses to that tally. Incidentally if you are interested; there are some pretty sweet US STeel 2020 bonds with a 7.375% coupon that just dipped under par the last few days.

Regards
Brandon
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folgore

Interesting. Genworth is on my list and I noticed the incredible yield. I think the only issue with them is their particular piece of the mortgage business. I was reading some chatter online, but not from a credible source mind you, that there is pressure to split up the company, because other than the mortgage piece of it, they are a cash machine. It reminds me a bit of Etrade a few years ago., but Genworth is obviously much much bigger in market cap and has an investment grade quality rating.

Incidentally, the Tenneco bonds were originally, I want to say something like BBB range or better possibly. Now two mergers later have slipped a several notches. Go figure.
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Actually as of this moment, Etrade & Genworth have basically same market cap size, $3B range, since Genworth's stock is down over 50% YTD.
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