House of Fraser junk bonds

Report in the FT intimated something similar with a reduction of capital for both banks and bondholders being estimated at 77%. 

Take the rough with the smooth, and as long as you have diversified it could have been worse; i.e. you were a shareholder or were an employer with a HoF pension plan. 

Hi Kaya, 

Just picked up your tags - we are still awaiting the details but it looks like the recovery will be +/- 20. The retail industry is asset light versus other industries where you might expect a higher recovery on senior secured debt. They obviously had issues in not being able to adapt to changing conditions in the retail market and with their shareholder support.

We have always said on past discussions that people should expect a few default losses in the corporate space over the medium term because even big companies can be susceptible to transformations in industries, economic conditions and bad management. This is why diversification is such an important consideration. 

We're also clear to investors that when making investments their capital is at risk (otherwise it wouldn't be an investment, just free money) and that ultimately it is investor's decision on which listings to invest in and build and manage their portfolios. We are providing access to the asset class with some similarity to how people can pick stocks. That's also part of the interesting thing, so people have the chance to learn and assess which opportunities are going to be rewarding for them and which aren't.

Hopefully it will be a long time till the next....

Well that assessment was wrong Wisealpha. The Newlook notes are now impaired, as well as Debenhams. They are obviously unsellable, but could you define what 'impaired' actually means ? Should I hold on hope that I may see a 20% return on principle in 2 years. Or should just forget I ever dabbled in Wisealpha. Fortunately I disposed of my other notes a few months back, but a wipe out on the my Newlook holdings would result in a significant overall loss.

I liked the look of Wisealpha and thought is was worth a test, but you're now holding nearly £1mil worth of notes in (somewhat amusingly named) 'Special Situations'. My own opinion and feeling in my experience in testing out the Wisealpha platform is maybe there is an over eagerness to float household name offerings over the promises of appropriate due diligence. For me my Wisealpha test is at an end.                     

The debt for equity swap is now complete. So essentially us bond holders now hold a share of ownership in the company. I wonder how Wisealpha will deal with this. With no open market for this equity it is difficult to establish its value. What options are there? Would be good to hear from Wisealpha in the near future.

Understood. I am now buying up perform bonds as they come on to the market do you think that is a good idea. Also looking at buying 1k worth of metro bank shares if they hit £4.80 any comments?