More discounted bonds.

music selection:  “Don’t Let Me Down” — The Beatles

I visit investments in the fixed income space each Friday.  Fixed income is essential the early retiree to mitigate sequence of returns risk.  With the current bull market long in the tooth, it makes a lot of sense to have some non-correlated and income generating assets in your asset allocation.  Today, I’m focusing on discounted high yield bonds.

On 5JUL2018 two of nine bonds with a good till canceled order cleared the market.  That was the Revlon 15FEB2021 maturity 5.750 coupon bond (CUSIP: 761519BD8).  Those cleared at 75.50 cents on the dollar.  The price moved upward and I adjusted my limit order to 77.00 cents on the dollar.  The remaining 7 bonds cleared the market on 16JUL2018.  Yield to maturity comes to about 19.01%.

I have two more limit orders open.  These are the Alliance One 15JUL2021 maturity 9.875 coupon (CUSIP: 018772AS2) with a bid of 87.00 cents on the dollar.  That bond currently trades for 94.94 cents on the dollar and I am waiting patiently for a fill.  I also have a good till canceled limit order on the CEC Entertainment 15FEB2022 maturity 8.000 coupon (CUSIP: 125137AB5) with a bid of 85.00 cents on the dollar.  That bond last traded for 94.10 cents on the dollar.  It could be some time before I get a fill as the bond is currently in a strong uptrend.

Devour your prey raptors!

Friday Fixed Income

Never miss another opportunity to devour prey!

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