I considered 2009 bonds too, thinking SFI has very little survival risk this year, but I ultimately backed away in favor of preferreds. Preferreds still offer 60% current return, but obviously no YTM. However, as a class they sell at 12% of par and 2009 bonds sell at, let's call it 85% of par. Granted, the bonds offer a higher position in the BK pecking order, but my conclusion was that there's way too much more to lose if I was wrong by buying a 2009 bond. And, provided BK didn't mean liquidation, the preferreds, imho, would not be wiped out BK. This is all just opinion on my part, and, quite honestly, day in and day out, those who have participated on this board consistently over the months/years, have proven to me that my depth of knowledge and insight on SFI is not very deep in comparison to theirs. This board is a wondrous tool.
Is it just me, or have you picked up/learned alot since you first signed on this board.
Good informative post - I don't agree with all of it, especially sfi in death danger, minor BS, etc... anyway - Congratualations you are forming opinions based on pertinent facts and acting on them and that is INVESTING not throwing your cash away on BS. Kudos.
Shaman, Thank you. I own some 3/13 bonds bought in the 80's and still continue to collect coupons. I know there's risk, but I thought that SFI shouldn't be the only one to benefit from the destruction of pricing in their unsecured bonds. I mean, this is just around 6 months hold time and, I think, these are easily purchased.