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Strategies & Market Trends : IPPs and Merchant Energy Co.s -- Ignore unavailable to you. Want to Upgrade?

To: KyrosL who wrote (226)	9/26/2002 11:28:23 AM
From: tom pope	Read Replies (1) \| Respond to of 3358

OT - do you use convertbond.com for the yields, Kyros?

To: KyrosL who wrote (226)	9/26/2002 3:52:27 PM
From: Mark Adams	Respond to of 3358

re ILD/Bonds I would think certain players would arb the bonds and exchange traded debt. If anything, maybe this comments on the lack of visibility into bond pricing and high friction costs associated with moving into/out of bonds. Somewhere else I seem to remember reading a comment about fallen angels (bonds that were investment grade now junk) trading at higher yields than similar rated debt that started out as junk. Asserted as evidence that the market (bond in this case) was irrational. But I also read somewhere else that debt issued as junk usually has better protection built in than debt issued as investment grade or better. Nice if we could track bond quotes of various players at a glance. I see EP-C trading at 17.90 ask is yielding 13.27% rated baa3 vs ILD trading at 18.90 yielding 10.4% rated at ba2. Hmm. Is the market pricing in future downgrade risk?

To: KyrosL who wrote (226)	9/27/2002 4:43:14 PM
From: Allen Furlan	Respond to of 3358

Kyosi, bond opportunities in this sector seem very interesting. Three or four weeks ago I bought sgr LYONS which are putable zero coupon bonds. SGR got hit with bad news on several of their utilco construction contracts, but in my opinion favorably renegotiated the terms of at least one contract. Anyhoo, the bonds were 50 and the May 1,2004 put is priced at 68.36. Of all the LYONS I reviewed I liked sgr the best from perspective of probable cash payback. Most LYONS have stock payback option but at price of stock at time of payback. P.S. although not strictly an energy company the performance of this company is dependent on the utilco sector.