Finlay: Buying the Cow & Barely Getting A Gallon of Milk

It has finally happened and I missed the announcement whilst I was on holiday... Finlay Enterprises has gone Chapter 11.

This is a case where I bought the cow and barely got a gallon of milk. I initially paid almost $0.48 on the dollar for these Finlay bonds and was only able to collect about a year of interest payments. Taking into consideration the interest payments I received, I effectively paid about $0.39 on the dollar.

I'm glad they expedited the bandaid ripping process though - although they clearly should have done it even sooner.

I now have three corporate bond positions that are still above water - Ambac, Neiman Marcus, and US Steel.

Sigh...