Sears Holdings Corporation 6.625% 10/15/2018

[menlo]

I'm seeing YTMs sub-10%, which strike me as challenging but not end-of-life bad (I believe these are senior in the food chain, compared to Sears Roebuck Acceptance Corp bonds with 20%ish YTMs).

 

I don't know much about bonds and bankruptcy, but would these be the ones to own in case BK is on the horizon and one believes this is a solvency vs liquidity problem?

 

PS:  I noticed that Zenith posted about this issue back in August.

[NoCalledStrikes]

I'm seeing YTMs sub-10%, which strike me as challenging but not end-of-life bad (I believe these are senior in the food chain, compared to Sears Roebuck Acceptance Corp bonds with 20%ish YTMs).

 

Those bonds may be senior in one of SHLD's food chains, but I think Eddie has created many food chains, and you want to make sure you pick the bonds that are in the chain that survives such as the one that has the Kenmore and Craftsman brands.