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Michael Gracie

Texting with Finance Friends: Junk Bond Holiday Song Edition

If you don’t know what a junk bond is or what’s happening to them right now, please run along. For the rest, this went to a trader friend this morning at 9:13am MST …

YOURS TRULY:

On the last day of Hanukkah
My true love gave to me
A portfolio of high-yield
Almost free

FINANCE FRIEND: silence

It did in fact turn out good for a return phone call a few hours later. The conglomerate response was:

You’re not very funny, so where did that come from?

Plus …

CNBC are fucking idiots

And finally …

I’m too fat to play golf right now.

I think the last was code for “I’m looking for a new job as we speak.”

MG signing off (to spread more holiday cheer)

Countrywide Bonds Offer Juicy Yield for the Hearty

The news today…Countrywide’s drawdown on short-term credit facilities, I guess to cover for the fact nobody is buying loans. The funny headline…Countrywide Bonds Offer Juicy Yield for the Hearty. Hearty indeed.

Talking with a friend earlier about the risks of shorting the broad market, we agreed that if KKR (or anyone else for that matter) gets one deal out the door, the indexes could turn on a dime. Still, they said they weren’t buying any of this Countrywide paper. What’s their business? Buying high yield paper.

Heh.

UPDATE: Yes, turn on a dime…on buyout speculation.

UPDATE2: B of A bought preferred stock with a juicy yield instead.