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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Robohogs who wrote (164788)	3/1/2012 10:42:42 AM
From: kollmhn	Read Replies (1) \| Respond to of 206326

"HY bonds in general only usually return 10-20 cents in any event." Give me the context in which you make this claim.

To: Robohogs who wrote (164788)	3/1/2012 12:18:00 PM
From: sammie44	3 Recommendations Read Replies (1) \| Respond to of 206326

>> HY bonds in general only usually return 10-20 cents in any event. These have all this other stuff stacked up!!>> Wrong. No way can you generalize like that and energy bonds in general typically have very good recoveries. DPTR filed not long ago. Their bonds are trading in the 70s. Opti Canada filed last year and then was subsequently bought out by Cnooc. Opti had first lien, 1.5 lien and 2nd lien bonds (all 'HY'). The 1st lien never traded below 99 even after they filed, the 1.5 lien never got below low 90s. The 2nd lien traded in 30-40 range at their lows and recovered in the mid-60s based on the bid. Where bonds trade to and what they recover are often two very different things. I bought a tech company (Spansion) bonds when they filed in 09 as low as 10-15 cts on the dollar and they recovered above par. Nortel bonds, which are still trading through the bankruptcy process now are trading above par after trading down into the 15-20 range.