I sold my US Steel (X) bonds at par.

music selection:  “All We Are” — Warlock

On 16MAY2019, I bought 8 units of CUSIP 912909AN8 for 87.4850 cents on the dollar.  I paid 8 dollars in commissions and 90.28 in accrued interest.  This action put 7,097.28 in capital at risk.  The bond had a stated coupon rate of 6.2500.  I sold today at par (100).  I paid 15.75 in commissions and fees and received 4.17 in accrued interest.  I collect 1,000 even in coupon payments over the holding period.  Total proceeds were 8,988.42.  I held the bonds for 670 days.  My annualized return is thus 14.52%.  That is a good yield for a bond that was always “money good”.  I had very limited risk in the trade and beat the long term average for the S&P handily.  I am still looking for more discounted bonds to by and have a few good till canceled limit orders open (“stink bids”).  The spread on high yield versus the Treasury is abysmal though and there are few attractive opportunities.

Devour your prey raptors!

Sell CUSIP: 912909AN8 at Par

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2 thoughts on “Sell CUSIP: 912909AN8 at Par

  • March 18, 2021 at 4:22 pm
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    I would have been tempted to hold that bond. Isn’t 6.25% close to your withdraw rate?

    Reply
    • March 18, 2021 at 5:43 pm
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      Chris,

      The bond strategy calls for selling at par when I can do so early for the capital gains. Current withdrawal rate as of yesterday’s close assuming a 21,600 annual budget is 5.16%.

      Reply

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