Ooops. Just went back to the bond well again and those stinkers are now up 6 bucks from what I paid a few days ago. Still great yields but I think I may wait to see if there is a drop in oil and a corresponding drop in bond price.
Thank you for your thoughts and comments. I hadn't bought bonds since using preferreds and bonds in beat up financials to dig out of the '08 hole and hadn't really even thought about them again until your comments. I really like this move and, as an old over-the-hill Midland refugee, have become a yield hound (especially after suffering bad burns on half a dozen E&Ps - oh, how I hate the North Sea).
"NGL reaffirms its distribution of $2.56 per common unit for calendar year 2016."
This was the guidance exactly 3 months ago and, in combination with DCF coverage, was a big factor in my investment decision.
For folks smarter than me, what has changed in the market that now requires a 40% reduction in the distribution and guidance?
It would take considerable time and effort to fully unravel the detail of their new big deal but at first glance it looks like someone is going to pull a whole lot of cash out of the transaction and has a very suspicious smell.
I'm hoping the market disagrees with me so that I can dump it with a profit.