My Random Walk Down Junk-Bond Minefield: How I Lost 77% after Buying DNR’s Unsecured Bonds at Rock-Bottom 8 Cents on the Dollar | Wolf Street

All in all, here’s the ugly math, even though I’d bought the bonds after they’d already crashed to 7.675 cents on the dollar:

Outlay: $448.39

Recovery: $105.05, or 23.4%

Loss: 76.6%.

If I had been an original bondholder and paid face value, my recovery would have been $105.05 from $5000, or a 2.1% recovery – for a loss of around 98% – not too far from the typical fate of unsecured creditors in a bankruptcy

My Random Walk Down Junk-Bond Minefield: How I Lost 77% after Buying DNR’s Unsecured Bonds at Rock-Bottom 8 Cents on the Dollar | Wolf Street