My limit order on CUSIP 125137AB5 is unlikely to ever fill.

music selection:  “Have A Cigar” — Foo Fighters & Brian May

Some time ago, I entered a good till canceled limit order on the Chuck E. Cheese 15FEB2022 maturity 8.000 coupon bond (CUSIP 125137AB5) at 84 cents on the dollar.  FINRA/TRACE showed several bonds traded below that price but apparently not at my broker.  I did not get a fill.

My thesis played out the bond recovered nicely from its pricing weakness.  The bond now trades above par.  Since it is unlikely I will ever get a fill in this environment, I am canceling my GTC limit order.  Hindsight being 20/20 I maybe should have bid 85 to ensure a fill.  I would have a great annualized return right now.  You never go broke on the trades you didn’t make however.

Some people have asked if I have a watch list of BBB rated bonds that might become fallen angels.  I am starting to build that.  The following list comes from the top ten holdings by sector of a BBB bond index I found via Google:

Citigroup

Capital One

Deutsche Bank NY

Goldman Sachs GP

American International Group

Bank of America

Morgan Stanley

Santander Holdings

Crown Castle

Synchrony

BAT Capital

Kraft Heinz

Reynolds America

CVS Health Corp

Constellation Brands

Molson Coors

Kroger

Kraft Food Group

Campbells Soup Company

Tyson Foods

ATT

Verizon

Discovery Communication

Viacom

CBS Corp

Omnicom Group

Interpublic Group

General Motors Finance

General Motors C

Newell Rubbermaid

Ebay

McDonald’s

Macy’s Retail Holding

Nordstrom Inc.

Lowe’s

Lear Corporation

Best Buy Co.

Conagra Brands

Dollar Tree

Sasol Fin USA

MPLX LP

Centerpoint Energy

Celgene Corp

Cardinal Health

Zimmer Holdings

Laboratory Corp

Aetna Inc.

Thermo Fisher

Zoetis Inc.

Humana Inc.

Quest Diagnostic

Brdcom Crp/Fin

HP Enterprise

Hewlett-Packard

Moody’s Corp

Motorola Solutions

Analog Devices

DXC Tech co

Tech Date Corp

Equifax Inc.

Arrow Electronic

Enterprise Product Partners

Valero Energy

Marathon Petroleum

Enable Midstream

Buckeye Partners

Boardwalk Pipeline

National Oilwell Varco

Phillips 66

Hollyfrontier

United Tech Corp

Fedex Corp

CSX Corp

Northrup Grumman

Rockwell Collins

Roper Technology

Keysight Technologies

Fortive Corp

L-3 Communications Corp

Xylem Inc.

Some of these are real dogs and are my watchlist to short the underlying or buy long dated puts as a portfolio hedge.  Others look like strong businesses that may suffer a liquidity crisis but not a solvency crisis.  Just where I want to invest.  I’ll keep you posted.

Devour your prey raptors!

 

Giving up on CUSIP 125137AB5

Never miss another opportunity to devour prey!

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