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Gold/Mining/Energy : Enron - Natural Gas Industry -- Ignore unavailable to you. Want to Upgrade?

To: ru2 who wrote (688)	11/26/2001 4:54:42 PM
From: Bob Rudd	Read Replies (2) \| Respond to of 1433

I haven't looked that closely at the bonds, but you'd want to analyze where in debt structure they stood. Mortgage bonds that are properly collateralized will fare best...junior subordinated debt the worst...but still better than equity. This isn't one, I'd want to cut my teeth on. Reading bond indentures is painfully complex, and unlike the stock, there's high transaction costs [spreads], low quantity buyers are disadvantaged, no highly liquid market to zip back out if you made a mistake. Conceptually, I kind of like the idea from a risk/reward standpoint, but it's not my cup of tea.