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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: arnold silver who wrote (28919)	8/4/2002 4:05:11 PM
From: Sergio H	Respond to of 29382

Hi Arnie. How safe are they is the right question. The higher the discount to par, the higher the risk that the dividend won't be paid. CHTR's bonds are selling at a 40% discount, therefore they carry great risk. Interest in buying junk bonds has been on the rise since Buffet bought Level 3's bonds. money.cnn.com CHTR bonds are risky and difficult to hedge. You can't short at most brokerages stocks this low in price and put options won't give you enough protection, again because the stock price is too low. Then there's the difficulty in buying corporate bonds. The bonds aren't available online through your broker and you'll end up paying a heftier commission than you pay for your stock trades when you do buy them. This is just my point of view, not advise. There seems to be a lot of interest of late in bonds, but it you're interested in high yield there's safer plays than CHTR's bonds. Sergio