Any input on my brother-in-law's idea........buy and hold (until maturity) short term bonds. At present DEEP discounts can obtain yields signifcantly over the coupon (some are 18% plus, not necessarily these). Really only one question needs to be answered...."will the company be in business to pay at maturity?". Buy enough bonds to spread the risk.
CLEAR CHANNEL COMMUN NOTES 4.500% 01/15/2010 MAKE WHOLE
USFREIGHTWAYS CORP GTD NT 8.500% 04/15/2010 MAKE WHOLE
BWAY CORP SR SB NT 10.00000% 10/15/2010
DOLE FOOD INC SR NT 8.87500% 03/15/2011
SLM CORP BONDS 5.450% 04/25/2011 ISIN #US78442FDY16 SEDOL #B12W431
VITRO S A B DE C V SR NT 8.62500% 02/01/2012
ARVINMERITOR INC NT 8.750% 03/01/2012 MAKE WHOLE
STONE CONTAINER CORP SR NT 8.37500% 07/01/2012
UNITED REFNG CO SR NT 10.50000% 08/15/2012
DENNYS HLDGS INC SR NT 10.00000% 10/01/2012
UNISYS CORP SR NT 8.00000% 10/15/2012
DELUXE CORP SR NT 5.000% 12/15/2012 MAKE WHOLE
CASCADES INC SR NT 7.250% 02/15/2013 MAKE WHOLE
SMITHFIELD FOODS INC SR NT 7.75000% 05/15/2013
ROYAL CARIBBEAN CRUISES LTD 7.00000% 06/15/2013 SR NT ISIN #US780153AQ51
ALLTEL CORP DEB 7.00000% 03/15/2016
CLEAR CHANNEL COMMUN NOTES 4.500% 01/15/2010 MAKE WHOLE
USFREIGHTWAYS CORP GTD NT 8.500% 04/15/2010 MAKE WHOLE
BWAY CORP SR SB NT 10.00000% 10/15/2010
DOLE FOOD INC SR NT 8.87500% 03/15/2011
SLM CORP BONDS 5.450% 04/25/2011 ISIN #US78442FDY16 SEDOL #B12W431
VITRO S A B DE C V SR NT 8.62500% 02/01/2012
ARVINMERITOR INC NT 8.750% 03/01/2012 MAKE WHOLE
STONE CONTAINER CORP SR NT 8.37500% 07/01/2012
UNITED REFNG CO SR NT 10.50000% 08/15/2012
DENNYS HLDGS INC SR NT 10.00000% 10/01/2012
UNISYS CORP SR NT 8.00000% 10/15/2012
DELUXE CORP SR NT 5.000% 12/15/2012 MAKE WHOLE
CASCADES INC SR NT 7.250% 02/15/2013 MAKE WHOLE
SMITHFIELD FOODS INC SR NT 7.75000% 05/15/2013
ROYAL CARIBBEAN CRUISES LTD 7.00000% 06/15/2013 SR NT ISIN #US780153AQ51
ALLTEL CORP DEB 7.00000% 03/15/2016