Thursday, December 28, 2006

Sirius Bankruptcy Rumors, Part 2

Think about it...Sirius bonds are trading near par. This would not be the situation if bankruptcy were looming.

After speaking to a few fund managers, the stock sell-off is most likely related to year-end tax loss selling. Additionally, managers do not want to get caught with losers in their portfolios when they disclose holdings to investors at year end. Thus, a common strategy is to load up on the winners, and sell the losers, more commonly known as "window dressing".

I suppose the best part for investors is that this year is almost over!