Distressed Bonds Go Their Own Way; Plus a Sell
When interest rates go up, bond prices go down. Most segments obey that rule, by falling in price, as the benchmark 10-year Treasury yield rose. But not distressed bonds.
distressed investing
Recession Is Here And That’s Good News
In today’s Journal, Porter recommends taking steps now to hedge your portfolio and to raise cash. The first step, he says, is to identify which companies that you hold haven’t been performing well over the last five years.
Trump Versus Reality
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.
Bonds Lead Stocks Out of Distress
In this issue, Marty Fridson details an opportunity to buy the common stock of a company whose bonds he previously recommended.
Why, and How, You Should Be Raising Cash…
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.
“Zeroes”, Tight Spreads, and Why the CEO Rushed Back From Singapore
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.
Sell Alert: Half position of Peloton Interactive (PTON)
With shares trading up more than 100% from our entry price, we are recommending selling a half position in Peloton Interactive (Nasdaq: PTON). In our initial report on Peloton, “A Change of Gears,” dated October 11, 2023, we recommended purchasing Peloton’s 0% coupon bonds coming due February 15, 2026. At the time these bonds were
What’s Your Plan Z?: What to Do When Things Go Bad
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.
Bonds and Liar’s Poker at Salomon Brothers
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.
Be Careful of Averages When It Comes to Distressed Debt
When investing in distressed debt, be very selective about which distressed bonds you buy. Buying a market basket of assets – a quick, efficient way of adding to equity holdings – is not a smart alternative with distressed debt.