Friday, September 16, 2011


I had an inquiry about the plunge in price of the AGY Holding's 2014 bond. I noticed this plunge early this morning: 

The short answer is that I do not know. I ran a google search and did not find anything.  I went to the firm's website and did not see any news:  AGY :: Strength in Materials I went to the SEC's website and did not see any filings since AGY filed its last Form 10-Q.   EDGAR Search Results I mentioned that I was not impressed with that earnings report in a prior post. Item # 3 AGY (8/17/11 Post)  All of those steps need to be done whenever an unusual event happens. 

Possibly, some independent rating service or commentator had some negative comments that provoked an owner to unload a position in a highly illiquid market. Another possibility is a stressed seller in an illiquid market.  An example of a stress seller is one who has to sell positions due to a margin call. 

The trading is bizarre this week as shown at FINRA - Investor Information. That site shows no change in the ratings, B3 by Moody's and CCC+ by S & P.  I looked on my confirmation for the buy of 1 bond back in May, and the ratings were the same then.  

The trading can be observed by entering a date range at the bottom of that FINRA page, starting with 9/14/11, and clicking the button.

Added 11/16/2011: I discuss the third quarter earnings report from AGY holdings in Item # 4 Earnings: AGY Holdings

Added 11/28/2011: I noticed today that Moody's had downgraded AGY's debt to Caa3 from B3 and kept a negative outlook. Moody's  I had already raised my risk rating to 10 from 9+ after reviewing the latest earnings report. (see link in 11/16 addition above). Personal Risk Ratings For Junk Bonds

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