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Politics : Formerly About Advanced Micro Devices

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To: TimF who wrote (146884)5/5/2002 8:22:44 PM
From: tejek   of 1574267
 
What do you think about WCOM bonds?

One person on Clearstation claims that one series is yielding over 40% but I have my doubt about that. MSN Money Central is talking about yields of about 20% and Forbes mentions bonds with yields "in excess of 11 percent".


And I heard 9%.

The bonds should be a lot less risky then the stock, unless the telecom downturn gets much worse (and then any investment in this area might be doomed).

I think the key here is the to look on a company by company basis. With WCOM, its debt load is such that I will only play it for the trade. However, with a CIEN and JNPR, I am willing to go long term. Again, the debt load is the determining factor mostly although with GLW, I am willing to go against my rules.

I don't really know much about buying bonds though. I understand how to buy stocks or even option spreads more then bonds. The basic idea of bonds is pretty simple but finding out specific information about them, and putting in small orders (I can't buy 5 or 6 figure blocks) is harder.

I don't know bonds either. J. Cramer says to play WCOM as an options trade.......I will try to find the article and post it.

ted
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