G. Innuendo

Corporate Bonds Haven’t Been This Cheap Since 1932

Check out quantumonline.com. There are some major bargains in $25 par corporate debt, and the market is too small for the big boys like Gross to play in. Find a company you like, and look up whether there's any decently yielding micro-bonds that are its debt. Then go to

There is some amazingly irrational pricing in so-called corporate trust preferreds, as well as third party trust preferreds. The guru on all this is Richard Lehman and incomeinvestor.com, a for-fee site. Buy his book.

I found an issue yesterday that's a) is blue chip investment grade b) is named such that it looks like it belongs to a well known company that's about to go bankrupt and c) is yielding 16 percent. It was based on 100 million of a 500 million dollar bond issued by the blue-chip company, which merged and demerged over a period of years, and then took over the debt of the failing firm. The 400 million in bonds that didn't get chopped up into $25 pieces are currently priced to yield 7.5 percent. Insane.