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  • A Safe 7.7% Yield From AIG [View article]
    Since this issue trades on the NYSE, they behave very much like a stock that pays a dividend. Commissions and all will be the same. However, the daily volume average over the last 3 months is around 87,000 shares. So, it is not as liquid as say the AIG common shares, but liquid enough. You should make sure that you put in a limit order as opposed to a market order.
    Sep 12, 2012. 04:03 PM | Likes Like |Link to Comment
  • A Safe 7.7% Yield From AIG [View article]
    It's hard to find the odds of a security being called. Mainly it will depend if AIG has excess cash (although they are buying back a lot of shares), or if they can sell the same or other type of debt at a smaller coupon to finance the buy back of this security. Please note that one of reasons the coupon is high is because it does mature for another 50+ years!

    I should have mentioned this in the article, but they have a similar security AFF (6.45% coupon) which had a call date this past June and has NOT been called back. If you are happy with a 6.45% coupon, it trades right around $25 with a dividend coming up in September.

    But the odds are definitely less than 97%!
    Sep 12, 2012. 02:47 PM | Likes Like |Link to Comment
  • A Safe 7.7% Yield From AIG [View article]
    Yes, yesterday it closed at 25.77. Today, it is 25.84. If you buy at 25.84 today, you will still recover all your money in the worst case if AIG buys back the shares at $25 in December because you will get (~$.96) in dividends till then.
    Sep 12, 2012. 12:12 PM | Likes Like |Link to Comment
  • Best Hedge Fund Investment Ideas (Part 1) [View instapost]
    I agree with you pocohonta. I do not buy anything from Sears except large items: TV, mattress, appliances. Their retail strategy definitely needs a makeover. I would not put money on them turning their stores around. However, with Eddie Lampert having such a huge stake, I have a feeling that he is going to everything to maximize the value of Sears. They sold some real estate to GGP for $270 million in February. They are spinning off Sears Hometown and Outlet Businesses for $500million+.
    Sep 11, 2012. 03:39 PM | Likes Like |Link to Comment