This month’s recommendation reminds us of our very first recommendation in March 2023, when we wrote about Diversified Healthcare Trust’s 9.75% bonds. We believe that in both cases, investors were looking backward rather than forward, creating an opportunity for high, risk-adjusted returns.
Many investors believe the biggest mistake you can make is buying a stock that performs poorly. But those mistakes are not as bad as selling great businesses… or not buying them to begin with.
Most investors think of bonds as unspectacular but steady performers whose role is to stabilize a portfolio that also contains the higher-octane asset class of common stocks. But subscribers to our Distressed Investing research know there’s another side to the story.
In April, we recommended selling the bonds of this e-commerce business at $878 – which we had recommended buying four months earlier at $840. They have since fallen dramatically. In this report, we are recommending buying them back. And we explain why the price of the bonds has dropped and why we think it will rise again.
The collapse of Drexel Burnham Lambert in 1990 triggered a collapse of the high-yield bond market: not a single new high-yield issue came to market for the whole remainder of the year. Marty Fridson recounts how the Great Debacle came to be.
Similar to Steve Jobs, Porter believes, Donald Trump has a “reality distortion field.” Trump’s reality distortion field, however, is blinding his supporters into thinking that he can return broad prosperity to the middle class without major dislocations in the markets.
When markets are hitting new highs, and inflation is rising, raising cash can feel like the last thing you’d want to do. But it should be the first thing to do. Here are few lessons on how to raise cash and where to put it once you do.
In this special edition of the Daily Journal, Martin Fridson, Wall Street’s Dean of High Yield, shows how companies looking to raise capital tend to issue new bonds into an environment that benefits them, and not investors. Marty uses his decades in the sector to provide insights into how you can get in on the right side of the bond market.
When things get really bad, escaping to the Grand Canyon is not enough. You need cash, passports, food, and all the right investments. Kim Iskyan explores Plan Z.
Just a few years before Michael Lewis was at Salomon Brothers, eventually writing his best-seller Liar’s Poker, Porter & Co. Distressed Investing analyst Marty Fridson was in another part of the building at One New York Plaza, identifying profitable trade opportunities in the debt market. He shares details in today’s Journal.