[Q, case study] What to expect when BONDs are in default (Venezuela, Sears holding, Alpha natural Resources))

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yayacoolsc
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Joined: Mon Oct 03, 2022 8:24 pm

[Q, case study] What to expect when BONDs are in default (Venezuela, Sears holding, Alpha natural Resources))

Post by yayacoolsc »

Hello,

Before I become a 3-fund bogle-head, I made a few silly financial decisions and bought some bonds and they are in default. For the past 4-8 years, I just left these "symbol" on my brokerage account and not spent time to look at it in details and just assumed all the losses. But for educational purpose, I decided to post it and get any feedback/info if any, so I can understand it better. So here we go:

- Alpha Natural Resources (default ~ 2015)
- Venezuela bond (default ~2017)
- Sears Holdings Corp (default ~2018)

Few questions
1) For Alpha Natural Resource, it granted me some shares of AMR/ANDD/CNTWW after the default, and AMR looks like a stock that I can trade, but I don't know what these "stocks" (ANDD/CNTWW) are as they have very large ask/bid spreads. Below are their description:

ANDD: N/A
CNTWW: Contura Energy Equity Warrants Series A Exp 26 July 2023

2) Venezuela bond
The country defaults many of its bond, and have hard time repay its debt at the moment. So what are the scenario I would run into? Say if one day Venezuela is free from debt, could it replay in full (or some)?

3) Sears Holding,
not much info I could find online, so I suppose it is gone like other junk bond (with all my principle.) Is there else I missed?
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