Monday, November 12, 2012

Quote of the Day

November 11, 2012
In This Junkyard, It Seems, There Are No Dogs

Low yields are driving more and more investors into really strange territory,” says Lee Pacchia, a Bloomberg Law analyst who follows corporate bankruptcies. “They need to take on risk. While the market forces driving this trend could go on for a while, lowering standards could end badly. It’s called ‘junk’ for a reason.”

Words cannot describe how much I am salivating over the chance to invest.



Mr Slippery said...

I learned a new term from the article, PIK toggle. Sounds like a TRS-80 BASIC command.

This boom has prompted an echo-boom in payment-in-kind transactions, or PIK toggles, which let companies pay interest in debt rather than cash, essentially deferring payments to their investors.

Only junk companies and junk governments have the cojones to pay interest with more debt.

Stagflationary Mark said...

Mr Slippery,

You sure are taking me on a trip down memory lane. The TRS-80 Model III was my first computer.

Did you check out the video in this post? It's all about hiking and proper hydration. Could save your life someday. Hahaha! ;)

Rob Dawg said...

Investments suck because of skim. Every opportunity is filtered such that any good investment is diverted to anyplace but the retail investor. Never forget the question: "If this is such a good deal why are you selling it?"

Stagflationary Mark said...

Rob Dawg,

That is indeed one of the better questions to ask oneself.

Here's another one with the same skim theme.

"I wonder how much these free trading tools will ultimately cost me if I become addicted to trading?"