Two more bonds sold recently.
music selection: “Because The Night (cover)” — Bruce Springsteen
On 11JAN2016 I purchased two units of Atwood Oceanics 6.500 coupon Feb-20 maturity bonds. I paid 45 cents on the dollar, two dollars in commissions and 58.86 in accrued interest. On July 1st, I sold the bond for 75 cents on the dollar. I paid 2.75 in additional commissions and received 56.33 in accrued interest. During the holding period, I collected 65 dollars from coupon payments. The trade was in force for 172 days and yielded 146.32% on an annualized basis.
On July 5th I sold the remaining Transocean bond in my portfolio. I originally paid 69.35 cents on the dollar on 17DEC2015. That came with 3.50 in commissions and a payment of 21.48 for accrued interest. I sold the bond for 92 cents on the dollar, paid 1.75 in commission, and received 9.57 in accrued interest. During the holding period, I collected a 32.50 coupon. The trade was in force for 201 days and yielded 61.12% annualized.
Even with a few losers (some real dogs!), discounted bonds have been my best performing asset class. I expect to have some capital freed up next week after some covered calls exercise. I’ll be looking to deploy more cash towards discounted bonds if I can find any tasty deals.
Devour your prey raptors!