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BUY
Bond Maturing in 2015. Hold or sell? This company is a distressed credit. He feels the 2013, 2014 and 2015 are Buys at current levels. Trading too cheap relative to what he thinks the eventual work out will be. He is fairly sceptical that all of these bonds will mature. (He owns some of their debentures.)
communications
media
DON'T BUY
Preferred A’s. Capstone would be considered as a B type credit, which is close to junk credit which he normally does not like. When you are playing high-yield, you want to be in the senior debt, which is ranked so much higher in the capital structure. This one has weak credit and is trading at a distressed level and is pretty illiquid for trading.
management
diversified
HOLD
This company is being acquired. What happens to the 6.25% convertible shares that are maturing Dec/14? A “change of control” clause gets triggered and NAL will basically offer you your money back. You don't want to do that because this takeover creates a stronger company and credit quality is improving.
oil
gas
COMMENT
6.75% bond maturing 2039. Hold, Sell or Buy? This is relatively cheap compared to government bonds. However, given his view on the long end of the market, this is offset and then some. The low end of the corporate space is probably fully valued here and you due to see some negative returns over the next 12 months.
Cable
COMMENT
Preferred Series T bonds maturing Aug/14? They don't actually mature on that date. This is actually a reset date. At that date, they have the right to Call them or reset the dividend at a spread over Canada's. With recent changes in bank regulations, he expects they will be called on that date. Trading at a premium. This will disappear over time. He likes them.
banks
COMMENT
B series 6.7% maturing Dec 31/51. One of the old-style capital securities and 2051 would be when the whole capital trust would wrap up normally. If they do not call it, you have the right to convert these bonds into preferred shares with a dividend well above what this company would provide in the market today. That would be a great trade in of it self. You could then convert those preferreds back into common stock at a discount to the market. They won't let this happen so they will Call this bond and a notice will be out sometime in May.
insurance
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