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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Don Earl who wrote (14472)	5/13/2002 12:24:25 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78595

Don Earl: Bonds - I'm not an expert but you may wish to consider the following with regards to distress bonds: Institutions do get a better deal on bonds...size matters. In a bankruptcy, the type and seniority of the bonds matters...usually the more senior debt is preferable. Interest is generally suspended and rarely paid in bankruptcy...it's in a different class than the principle. Consider time....some BK's take several years to work out. I heartily concur that WCOM bonds would be a better bet than the common which, to quote "The Little Shop of Horrors," "Sure looks like plant food to me." That said, I really couldn't say if that makes the bonds a GOOD deal at current levels.