Crashnburn

Convertible Bonds: Cashing In on Desperation

I did very well with CHI until I sold all of my holding of it in Oct. 2007. Since then, the share price has declined 45%. I hadn't even considered buying back into CHI until I read this article. I'm going to put it on my watch list, but for now, I'm 84% in TIP, and 16% cash. I'm thinking 5% of CHI will bring my targeted bond exposure to 20%.

Also, as of yesterday, Morningstar says CHI has a 4.5% premium. I have a hard time paying a significant premium for anyfund. It looks too much like a sales charge (I know it isn'!).