RE:RE:RE:TradingI usually assume I'm holding to maturity when I make a debt investment because liquidity isn't great. In this case, if we go to CCAA, I assume, I will do better than the current quote and maybe even get a full recovery depending on the operating performance over time.
I used to own Twin Butte bonds. They went in to CCAA when the bonds were 14, I believe and we ended up collecting around 80. Anyone who sold missed out. There was some luck there for sure as the oil price bounced but in this case, if the bond holders become the equity, that's at least $6m/year in additional cash flow. Equity holders got nothing.
That being said, I'm prepared to lose everything but there is a whole year for management to try to find a way to keep their jobs ahead of us and another 8 points of interest to next October.. So risking 19 to make 100, seems worth it even though it probably ends up somewhere in between.
watchmeplz wrote: In my opinion, method the only way it makes sense for .DB is if they continue past the debenture maturity which the odds of that are highly skeptical at best, if they announce ccaa than you couple that with how .DB is as liquid as a solid rock and I would start to think its better to be liquid as possible when a ship is sinking which is why your here anyways to make your market more liquid and have the ability to exit should you not make it to maturity, right?
Method wrote:
BCmountainman wrote: Listen up in the last forty trading days thats right forty there were four green days and 36 red days, now tell me one think who is getting payed off, im sure of one think its not the shareholder and that is a damn shame.
I collected interest worth 11% of my position on June 30, so FIRE.DB holders got paid at least. No reason why everyone here can't switch into them too and get paid in December about 11% of your cost basis if they buy where it's offered at 27.
I'm not saying it's going to work out but that I think (lots here don't) that it will return higher than the common but I'm a broken record.
Hope everyone gets paid in the end and I hope the equity does better than the debentures but only if the debs make 400% first.