KTP - Structured Products CorTS, J.C. Penney Debs, 7 5/8% Certificates
HJV - MS Structured Asset SATURNS 2007-01, 7.00% J.C. Penney Co. Inc.
PFH - Corporate Asset Backed Corp., CABCO Trust J.C.Penney 7 5/8% Debs
JBN - Select Asset, 7% Corp Bkd Call Trust Cert. 2007-1, J.C. Penney Debentures
JBR - Select Asset, Corp Bkd Call Trust Cert. 2006-1, 7% J.C. Penney Debentures
Sym - Price - Interest - Annual Yield
KTP - $21.47 - $1.91 - 8.90%
HJV - $18.60 - $1.75 - 9.41%
PFH - $21.55 - $1.91 - 8.86%
JBN - $18.30 - $1.75 - 9.56%
JBR - $18.71 - $1.75 - 9.35%
These are JCP bonds that trade like stocks. According to Quantum Online, each share is worth $25 at bankruptcy. Otherwise, they currently pay over 9% semiannually. These are probably better deals than longing or shorting the common.
So, since the market is pricing these as though they were very, very risky, you feel the market has it all wrong?
The market is often wrong. I bought some yesterday at the dip. We'll see.
Are you claiming these bonds are risk-free?
nothing is risk free. but with over 3 billion in net book value, i consider it pretty risk free. it is certainly less risk than being long or short the common share.