Car Talk
The bond we are recommending this month was issued by a spinoff technology company that is the leading player in a growing industry. Now under new management it is doing the right things and beginning to turn the company around.
Distressed Investing
Sell Alert: QVC 4.375% Bond Maturing 9/1/2028
In Distressed Investing’s December 2024 issue “Rising From The Ashes,” Marty Fridson and his team recommended buying QVC’s 4.375% bond maturing September 1, 2028, then at $840, up to a price of $860. The bonds currently trade for $878, up 4.5% from the entry price. We liked QVC’s business –- which had been improving –
What Bonds Do When No One Is Watching
Stocks dropped 10% over a four-week period in February and March. As is usually the case, the performance of bonds didn’t capture quite as many headlines. But their behavior as equities sank is worth examining – especially by investors who don’t know about the benefits of distressed bonds.
Clear Skies Ahead
Since we recommended this company’s bond a year ago, the company has improved its performance, and the bond, still a year out from maturity, is trading near face value, having increased in price by 24%. This month, we are adding the shares to the portfolio.
A Possible Turning Point For Distressed Debt
Tight credit isn’t the only factor driving the Distress Ratio’s rise and fall. But it’s a powerful one that’s likely to keep making it harder for struggling companies to refinance their maturing debt in coming months. It all adds up to a likelihood that distressed-debt investors will have a significantly wider array of bonds to choose from before very long.
A New Burst Of Life
This nutrition company was the focus of an epic battle of two investment titans. Since that dispute ended, shares have been up and down – now creating an opportunity to buy the company’s bond at a very large discount.
Startup Guide – Porter & Co. Distressed Investing
If you’ve never traded bonds before, start here. Our Distressed Investing team will walk you through how bonds work, how and where to purchase them, and what to say to your broker (even if they don’t understand bonds). We also include a handy glossary, a clear breakdown of “bond math,” and more.
Distressed Bonds Outpaced S&P 500 In 2024
The total return of the average distressed bond exceeded 30% in 2024, beating the S&P 500 Index’s total return, which was well above its own historical average, at 25%. Still, with many big losers in that average, picking the right bonds is essential with distressed investing.