Saturday, December 20, 2008


I have been asked to identify the long corporate bonds that I recently bought which I have discussed in this post.  This was in reference to my last post where I discussed adding to my bond positions over the past few months.  The following does not include bond ETFs bought recently such as TIP, BWX, TFI, and LQD, nor links for my general discussion about the favorable bond prices and spreads for investment grade corporate bonds .    I do lump perpetual preferred issues (both the floaters and fixed rate) with the long bonds in my asset allocation. I have previously discussed why. Maturity Dates: Bonds, Perpetual Preferred Stocks/INZ, CUSPRB, GRT, FRPRJ, METPRA ( I also lumped preferred stocks with long bonds in this post describing my current allocations:VANGUARD ASSET ALLOCATION: IS VANGUARD PROUD? MORE ON VXD -closer now to 40 individual security positions in this category than the 30 mentioned in that post from 11/29/08)  

 I have not attempted to discuss all of my buys but only to highlight a few of them.  Most of the ones discussed are long bonds contained as the underlying securities in Trust Certificates and these include the following: JZE, JZJ, JZV, DKQ, PJS, XKK, PIS, PFX, PKK, EHL, EMO, JBI, OSM, KTN AND KVW.

I have a slight loss on the Macy's  and CNA bond buys.  This has been a positive category for me this year. I have sold several TCs profitably, received a large number of interest payments, and have an unrealized gain in my existing positions bought this year.   I talked about TCs more than individual bonds in these posts because the TC market presented the best opportunities for yield and price appreciation in the October thru November time frame for the reasons discussed throughout these posts. 

I generally do not discuss bonds purchased except for those purchased on the stock exchange which can be done for all the TCs and some other issues like PFX, plus another I may add next week. 

The buys of preferred stock issues are also quite numerous and include the following purchases GRTPRF, INZ, CUZPRB (since sold), FRPRK, FRPRJ, SLGPRD, LXPPRD, CBLPRC, BEEPRA, AEB, METPRA, BACPRE, KEYPRA (SINCE SOLD) AND BDNPRC. By entering a search term in this blog, you can find just about anything contained in my posts.   Links to discussions of those securities include the following among many others:

for keypra:     KEYPRA         and TAX LOSS SELLING TODAY

My gains have occasionally been larger than with any senior long bond, witness the recent quick buys and sells of INZ, KEYPRA, CUZPRA, and the buy of GRTPRF,  but I have also had more buys fall slightly under water than with my TC buys.  This highlights the risk and the potential upside for the preferred issues that I have been buying.   Both areas have proven beneficial and positive for 2008. This asset class has been a positive contributor along with the bond ETFS. 

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