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Check Out The 6.875% Of 2019 Jones New York Bonds

|Includes: The Jones Group Inc. (JNY)

In my opinion these bonds are priced for death, yet there is nothing I can see to make me think they shouldn't continue to perform and be money good at maturity if they are not retired via tender offer using a revolving credit line or some other means.

The company was taken private by Sycamore Partners in April of 2014, and has shut its wholesale/retail locations (127 of them) during 2015/2016.

However, the brand name lives on on Jones' website, and seem to be looking to make a comback through different retail store channels such as Bon-Ton and special promotion. This fall's lineup looks as good as any in the price/quality range and I still think Jones has some cachet left for the more cosmopolitan crowd.

Yes, I know retail is struggling (i.e. SHLD, JCP, BONT), but there's only $28mm outstanding and the coupons are being paid. Current pricing is around $25 with a YTM of 79%. I believe Jones has as good as shot as any to survive and eventually thrive (although on a more diminished scale).

Price chart for this issue can be seen here:

For you distressed debt investors out there I'd give this one a serious look. Based on comps, this bond should be trading at $40, maybe more.

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in JNY over the next 72 hours.