Tuesday, January 27, 2015

Exchange Traded Bond and Preferred Stock Table as of 1/27/15

I infrequently update this part of my portfolio since it has been downsized substantially due primarily to redemptions or to bonds reaching maturity (primarily Citigroup Funding "principal protected" senior unsecured notes). I have also engaged in a fair amount of profit taking, including frequent trading of some securities. 

At one time, the exchange traded bonds and preferred stock segment of my portfolio was close to a $150,000 market value, and this allocation is now hovering near $60,000. 

I thought that today was a good one to update the list since this segment rose in value and consequently provided a much needed ballast to the stock market's decline. These securities did what they were supposed to do on a big down day for stocks.  

Overall, my portfolio design accomplished its objective today, with my main taxable account declining just .13%. Stocks, Bonds & Politics: Portfolio Management Goals-Snapshots of Performance Numbers YTD, 3 and 5 Years Cumulative I also had a number of sectors besides bonds rise in price. The REIT basket, for example, was net green today. I also maintain a large percentage cash allocation which has grown from about 20% to 25% over the past several months. I deployed some of that cash today. 

Closing Prices 1/27/15: 

Nasdaq: -1.89%
S & P 500: -1.34%
DJIA: -1.65%

Exchange Traded Bonds and Preferred Stock Portfolio +.37%:

Click to Enlarge: 

Exchange Traded Bond and Equity Preferred Stocks as of 1/27/15

The last update was probably in February 2014: Stocks, Bonds & Politics: Updated Exchange Traded Bonds and Preferred Stock Table as of 2/10/14 Since that update, I have lost several securities to issuer redemptions and have sold others in a periodic profit taking cleansing process. 

Exchange Traded Bonds include the following categories:
Trust Certificates: New Gateway Post (snapshots of gains/losses)
European Hybrids: (e.g. ING HYBRIDS and Aegon Hybrids)
Baby Bonds Usually with $25 Par Values

As noted in the Gateway Post for Trust Certificates, that niche segment was considerably mispriced in 2008-2009. 

I discuss equity preferred stocks in two Gateway Posts:


Those last two linked posts contains snapshots of profits and losses. My losses have been immaterial to date. 

The floaters will reduce the overall yield of this portfolio compared to fixed coupon securities, but provide a measure of inflation protection. I have recently been adding in small 50 share lots to equity preferred floaters:

Equity Preferred Floating Rate Stocks: Added 50 GSPRC At $19.63 - South Gent | Seeking Alpha

Equity Preferred Floating Rate Stocks: Added To MSPRA At $19.87 - South Gent | Seeking Alpha

Stocks, Bonds & Politics: Bought 50 BMLPRJ at $20.25

All of my Citigroup Funding PPNs matured in 2014: MOU, MBC, MTY, MKN, MKZ, MOL 

I am not including ETNs in the foregoing list, even though those instruments are senior unsecured notes. I currently own the following ETNs: 50 AMJ, 40 BDCL and 100 MLPG.

My REIT equity preferred dispositions since September 2013 can be found in this post, along with snapshots of the profits from those trades: Stocks, Bonds & Politics: Gateway Post: Equity REIT Common and Preferred Stock Basket I did buy a number of them in small 50 share lots after their prices were smashed during the rise in interest rates during 2013.

Several of the positions listed in the latest table are vintage.

My average cost for the Trust Certficate KTN is around $14 from the Near Depression period. TRUST CERTIFICATE AON BOND KTN ORDER FILLED 100 shares at $13.1 (October 2008 Post)KTN add at less than $14 November 2008Sold 50 of 150 KTN at $28.17 (September 2010 Post) Most of my trust certificates were redeemed by the owners of the call warrants attached to those certificates.  

I bought SCEDN at $84 in 2009. Stocks, Bonds & Politics: BOUGHT 50 SCEDN AT $84  

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