Remember that I mistakenly bought CIT bonds (originally intended to buy citi bonds)? while my subsequent citi bonds has a nice paper gains, as you may know, cit is on the edge of filing bankruptcy soon. Will learn a lesson what happens to the bonds when the issuer files bankruptcy...
cit bonds last traded at 35, down from about 85 two days ago, from 96 at beginning of the week. The price I got it at the end of Dec. was 91. Now I have the paper loss that is more than all the paper gains from my other bond holdings. My only hope is that it does not file bankruptcy. In these past days its shares are the most volatile I have seen, signaling the direction of the filing.
Not sure what happens to my bond if it gets bought by another bank, like CFC by BAC; if it files like Lehman bro. I will probably get nothing, if filing like the Auto companies, I will get very little. Will see. the press keeps talking about their billions of bonds due next year, but mine is due in 30 days, and mere a $61million note issued last August.
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