Another pair of bonds sold on Friday.
music selection: “Ice Ice Baby” — Vanilla Ice
On 11JAN2016 I purchased two bonds. This was the Freeport McMoran 2.375, 15MAR2018 maturity. I paid 72 cents on the dollar, twelve dollars in commissions, and 15.70 in accrued interest. On Friday, I sold the bonds for 98.9 cents on the dollar. I paid 4.25 in commissions and and collected 13.72 in accrued interest. The trade was in force for 165 days and round trip, yields 81.92% annualized. In all, 1,467.10 capital was at risk and I cleared 2011.23 for 543.53 in profit. I think the risk/reward proposition on that beats owning either FCX or the yield on options on the same.
Devour your prey raptors!
Update Discounted Bonds
The Lizard King – I take 81.92% annualized yield any day. Good Job !!! Do you think the markets will be down next week, or will people be buying?
I have no crystal ball. I’d expect Monday to get a little bounce as people start to digest Brexit. After that, anything can happen.