Tuesday, December 09, 2008

Playing the Auto Bailout: Yields as High as 48%

Investors are looking for ways to play the automobile company bailouts, without having to speculate on the General Motors (GM) or Ford (F) stocks. A safer way of speculating on the autos is by buying their convertible preferreds, notes, convertible debentures, and minibonds, all of which should be paid off before the common shareholders are paid off, in the event of bankruptcy.

General Motors, 4.5 convertible debentures, 2032, (GXM) 25%

General Motors, 5.25, 2032, convertible debentures B (GBM) 34%

General Motors, 6.25, 2033, convertible debentures C (GPM) 36%

General Motors 7.5, 2044, (GMS), 43%

General Motors 7.375 (HGM) 44%

General Motors Senior Notes (BGM) 48%

General Motors 7.25 Notes (RGM) 48%

General Motors 7.25 (XGM) 45%

General Motors 7.25 QUIB (GMW) 45%

GMAC, 7.25 notes, 2033, (GKM) 42%

Ford Motor Capital Trust II 6.50% Cumulative Convertible Trust Preferred Securities due January 15, 2032 (F-PS) 35%

CorTS Trust II Ford Notes 8.00% Corporate Backed Trust Security Certificates (KVU) 36%

Certificate of Trust Ford Debentures Corporate Backed Trust Securities 7.40% (KSK) 34%

Ford Motor Company 7.5% Notes (F-PA) 30%

Lehman 8% Corporate Backed Trust Certificate Ford Motor Company Note-Backed Series 2003-6, Class A-1 (XVF) 33%

Ford Motor Credit Co. LLC 7.6% notes due March 1, 2032 (FCJ) 23%

Ford Credit Notes is the Ford Motor Credit 7.375% Notes due October 15, 2031 (FCZ) 22%

Above symbols are based on Yahoo's format for stock ticker symbols. Research the details on these securities before investing.

If you like high yields, you should check out the list of monthly dividend stocks at WallStreetNewsNetwork.com.

Author does not own any of the above

By Stockerblog.com

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