SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?


To: Bonnie Bear who wrote (14899)3/16/1998 9:48:00 PM
From: yard_man  Read Replies (2) | Respond to of 18056
 
Not a financial analyst, but maybe I know more or as much as our resident one. Why would any private bond go down except for two reasons:

1) Perceived change in the financial soundness of the company.

or

2) Relative worth to other similar fixed income investments.

For well run gas utilities I see little risk.

Electric utilities have deregulation to face and the treatment of so-called "stranded costs."
I think most of these costs will be borne by ratepayers and that investors don't have to worry. I would avoid the electrics with large portfoios of nukes.

Water utilities are facing real infrastructure problems. So far they have easily been able to pass along the huge costs for replacing their distribution systems to the public, but "times are good" and there is the issue of replacing contributed plant.

I think a utility bond fund is a good idea right now. You're not going to make a killing, but you're not going to get clobbered either.