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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: greg nus who wrote (48962)	2/8/1999 9:36:00 PM
From: Kevin K. Spurway	Read Replies (2) \| Respond to of 1571188

"Why would in good consence would u want to be a holder if u thought the bond would default. were default to occure u get no interest, and the bond would fall in price much faster than the underliying stock given it's already compressed value." Greg you're right it's not smart to do this if you seriously believe the bond will default. But if there's a high correlation between the equity price and the convert price (which there will be here because it's a sub-investment grade convert), it could be a good trade if the coupon is high enough and the cost of maintaining the short is low enough. This trade is probably not for someone who'd want to hedge the convert 100%, but instead is bullish on AMD in general. Kevin