I sold the Tailored Brands (Men’s Warehouse) bond on Friday.
music selection: “Up Where We Belong” — Joe Cocker & Jennifer Warnes
First a little housekeeping. I’ve been trying to gracefully exit CCLP shares for some time. To that time, I sold the 17JUL2020 2.5 calls for 15 cents a share on Friday. The trade will be in force for 155 days and yields 14.13% on an annualized basis. I will take a substantial capital loss if shares are called away at that price. But I’ll be glad to take it. The investment has been a dog.
In more exciting news, I have had 7 bonds of Tailored Brands (CUSIP: 587118AE0) since 21NOV2019, which I bought for 96.5 cents on the dollar plus 7 dollars in commissions and 196 in accrued interest. I sold at PAR on Friday, paying 7.75 in commissions and fees, collecting one coupon plus 65.33 in accrued interest for total proceeds of 7,302.58. The trade was in force for 85 days and has an annualized return of 21.27%.
This is a really good return for a sleepy bond that was always money good and even traded near par after its worst quarter in memory. I’m giving up some current income but freeing up capital to invest in better bonds as opportunities arise. I am also trying to sell my JC Penny bonds at par and expect to get that price in the next few months. A similar annualized return will then be realized.
Devour your prey raptors!