First some unfinished business from yesterday, then bonds.
music selection: “Summertime Sadness” — Lana Del Rey
Yesterday, I was unable to sell a covered call in PSEC. I went further out today and finally got filled about 8 minutes before market close. I sold PSEC170519C00009000 for 9 cents a share. The trade will be in force for 117 days (long for me!) and yields a paltry 3.15% annualized. It’s all bonus yield over the underlying distribution of 11.5% though.
A long open limit order for the 10.000 coupon 15JAN2018 maturity IHRT bond finally cleared today. Originally, I purchased the bond on 13SEP2016 for 63 cents on the dollar. I paid seven dollars in commissions and 33.89 in accrued interest. Today, I sold for 78.25 cents on the dollar. I paid 7.75 in commissions and collected 6.67 in accrued interest. I also collected 50 dollars in coupons during the holding period. The trade was in force for 133 days and yielded 76.58% on an annualized basis.
This trade leaves me with just 6 outstanding bonds, half of which are in bankruptcy/debtor in possession status. I’ll be waiting for a crack in the credit cycle to give existing bonds some weakness to buy into before topping up again.
Devour your prey raptors!