Is Buying Bonds Really a Good Idea? [View article]
On Dec 31 10:36 AM Alex Filonov wrote:
> Bond don't make sense when you can have 7-8% dividend investing in > great companies. Altria, ultimate recession proof company, pays 8.5% > dividend!
That is about what the YTM would be on 10 yr Altria debt and the interest/principal payment is not discretionary like a dividend. A lot of good companies have had great dividend yields until they were cut.
Read the report from S&P on the downgrade. It is mostly positive and then they basically say "We don't want to yell fire in the theater, but FIRE FIRE FIRE FIRE FIRE!!!" That is insightful analysis. It was basically all based on stock price move. Every financial was down today so is every one going to be downgraded to junk tomorrow?
Regional Bank Debt Buyers On Strike [View article]
Pimco is too big to make any return on company selection and since some banks may fail they underweight the sector. Pimco's strategy is instead to just to put on a large sector position and then have Bill Gross and El-Erian talk about how great it is. Keep buying Fannie and Freddie debt everyone.
Murdoch purchased an existing enterprise with good journalists. WSJ still holds credibility until those journalists are replaced. How much credibility does someone have whose comments are 95% anti-Republican? Probably less than the WSJ with most people.
Not reported in the WSJ, Lehman had some large bids out for their own bonds yesterday too. It doesn't mean they repurchased any debt cheaply but they may have. If only I knew some "people familiar with the situation."
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Is Buying Bonds Really a Good Idea? [View article]
> Bond don't make sense when you can have 7-8% dividend investing in
> great companies. Altria, ultimate recession proof company, pays 8.5%
> dividend!
That is about what the YTM would be on 10 yr Altria debt and the interest/principal payment is not discretionary like a dividend. A lot of good companies have had great dividend yields until they were cut.
Testing the TARP: PNC and NCC [View article]
CIT Group: Owens is Out; Is Peek Next? [View article]
The Broken State of Corporate Bonds [View article]
Trying To Find a Buyer for WaMu [View article]
Regional Bank Debt Buyers On Strike [View article]
Trusting the WSJ [View article]
Not reported in the WSJ, Lehman had some large bids out for their own bonds yesterday too. It doesn't mean they repurchased any debt cheaply but they may have. If only I knew some "people familiar with the situation."