Thursday, June 29, 2017

Observations and Sample of Recent Trades: (HTPRD, IDLV, SWASX)

Interests rates continue to trend up in early trading today.

U.S. 10 Year Treasury Note -MarketWatch

iShares 7-10 Year Treasury Bond ETF

The German ten year bond has spiked in yield this morning.  

While that spike is from one extremely abnormal level to a slightly less extremely abnormal one, the percentage move is huge at about +24.65% as of 8:00 A.M. C.S.T. compared to yesterday's close. Germany 10-Year Bond Historical Data -

Long-Term Government Bond Yields: 10-year: Main (Including Benchmark) for Germany© | FRED | St. Louis Fed

The data is pointing to a global synchronous growth cycle, mostly a no show since the Near Depression. The questions remains for how long and how powerful. U.S. stocks may have already been priced for a global growth trend. International stocks less so. Bond prices have not even considered the possibility that CB's may actually withdraw their extremely abnormal monetary policies as growth picks up, or that inflation will perk up with increasing demand.  

The government issued this morning a revised GDP report for the first quarter. The latest estimate shows a 1.4% annualized real GDP growth in that quarter. The first reading was at .7% and the second reading at 1.2%.

GDP 2017 1st Quarter.pdf



By Criticizing Obama, Trump Contradicts His Own Comments on Russian Meddling

I recently listened to a Trump supporter claim that the world respects Donald. Meet the "Front Row Joes," Trump supporters who camp out for rallies - CBS News  

That statement and countless others routinely made by Trump supporters instantly remind me of Daniel Patrick Moynihan's statement that "everyone is entitled to his own opinion but not to his own facts". An American Original | Vanity Fair

Poll shows U.S. tumbling in world’s regard under Trump - The Washington Post

Trump Unpopular Worldwide, American Image Suffers | Pew Research Center

Thomas Friedman recently toured New Zealand, Australia, South Korea, China, Taiwan and now Hong Kong, talking with business and political leaders. Those leaders have "taken Trump's measure" and concluded that — far from being a savvy negotiator — he’s a sucker who’s shrinking U.S. influence in this region and helping make China great again." Trump Is China’s Chump - The New York Times


Trump has decorated his golf clubs with a fake cover of Time magazine: A Time magazine with Trump on the cover hangs in his golf clubs. It’s fake. - The Washington Post


At least Donald has found a business where he can avoid losing hundreds of millions and to actually make a risk-free profit. Donald has found success in creating a brand, called Trump, and then licensing his name to others who take the financial risks. He has been superb in his successful, though thoroughly shameless, self-promotion about his alleged business acumen that was instrumental in the creation of the Trump brand. Donald Trump's Real Secret To Riches: Create A Brand And License It: Forbes; How Trump has made millions by selling his name - Washington Post 

Before Donald hit upon creating and licensing the brand "Trump", Donald was losing tons of money. Yep, Donald Trump's companies have declared bankruptcy...more than four times | PolitiFact; Trump's Huge Operating Loss Came From Mistakes And Gambles : NPR  

In one of Donald's recent tweets, how many false claims can you find? I think that he needs to try harder and make 4 false claims in a tweet.

Donald J. Trump (@realDonaldTrump) | Twitter

Donald Trump Attacks Amazon, Washington Post and Jeff Bezos |

Despite President Trump's tweet, Amazon already collects sales taxes: CNBC

I would note that Donald does not provide any facts to support his claim that the WP publishes fake news. Trump, on the other hand, creates Fake News virtually everyday and rarely tells the truth about anything. The Fact Checker’s tally of Trump’s false claims since becoming president - Washington Post


Ivanka and Her "Original" Shoe Designs

Do you think that Ivanka copied the Wild Thing shoe design made by an Italian company called Aquazzura? 

Judge: Ivanka Trump must answer questions in shoe design lawsuit - Jun. 24, 2017

Ivanka said she was too busy helping her Dad run the country to give a deposition in Aquazzura's lawsuit, but the judge disagreed.

You can buy the AQUAZZURA Wild Thing shoe for a mere $795. Just another tidbit, like Einstein's theory of relativity, that is and will remain forever beyond my comprehension.

Other Ivanka brands look similar to other Aquazzura shoes. Aquazzura's Shoe-Copying Lawsuit

China frees activists who probed factory that made Ivanka Trump shoes, group says - Jun. 28, 2017  


A. Bought 2 JPM 2.95% SU Bonds Maturing on 10/1/26

Finra Page: Bond Detail (prospectus not linked)
Credit Ratings: 
Moody's at A3

YTM at Total Cost (97.189) = 3.303
Current Yield: 3.04%

JPM Analyst Estimates 
1Q17 Earnings Press Release
10-Q for Q/E 3/31/17 
2016 Annual Report 
JPM SEC Filings

B. Sold 2 Shell International 2.25% SU Bonds Maturing on 1/6/23

Profit Snapshot: +$17.21

FINRA Page: Bond Detail

I sold at 98.816 or 98.716 after the $1 commission. The YTM at 98.716 was 2.498% as of 6/5/17. The current yield at that price is 2.28%. 

I bought this bond on 3/17/17 at a total cost of 96.995. As of that time and at that price, the YTM was 2.815% and the current yield is 2.319%. 

I discussed the purchase in Item # 1.C.

C. Sold 2 Verizon 1.75% SU Bonds Maturing on 8/15/21

Profit Snapshot: $21.88

Finra Page: Bond Detail

I discussed this purchase here: ITEM # 2.B. 

I bought these bonds at a total cost of 96.274 on 1/17/17. The current yield at that price is 1.817% with the YTM then at 2.62%

I sold at 97.468 or 97.368 adjusted for the $2 brokerage commission. The YTM at the net proceeds number was 2.415% as of 6/6. The current yield at 97.468 is 1.796%

I am using the proceeds to increase my current yield while capturing part of higher YTM number several years prior to maturity. In this particular case, the spread between the current yield and the YTM yield was .803% as of 1/17/17. I harvested .205% of that spread or 25.5% on 6/6/17. 

I will now look for an opportunity down the road to buy back these bonds when my current yield based on total cost is 2%+. 

Verizon 2017 First Quarter Report 

2016 Annual Report

D. Sold 2 Omega Healthcare 4.375% SU Bonds Maturing on 8/1/23-A Roth IRA Account

Trade Snapshot: 

Profit Snapshot: $33.16

FINRA Page: Bond Detail

Credit Ratings: 
Moody's at Baa3
Moody's upgrades Omega's senior debt rating to Baa3; stable outlook
S & P at BBB-
Fitch at BBB- Fitch Affirms Omega Healthcare Investors at 'BBB-'; Outlook Stable | Reuters

Credit Ratings – Omega Healthcare Investors, Inc.

I discussed this purchase in this post: 

Item # 5. Bought in Roth IRA 2 Omega Healthcare 4.375% Senior Unsecured Bonds Maturing on 8/1/2023 at 100.995 (101.195 with commission)Update For Exchange Traded Bond And Preferred Stock Basket Strategy As Of 7/19/16 - South Gent | Seeking Alpha

The YTM at my net proceeds price (102.720) was 3.861%. The current yield at 102.920, the price paid by the purchaser, is 4.25%. 

I mentioned in a recent comment selling 107 of 188+ shares of OHI's common stock which reduced my average cost per share to $30.22. I will discuss that trade in a subsequent post. The profit snapshot can be found in my Gateway Post for the Equity REIT Common and Preferred Stock Basket Strategy.

E. Sold 2 Duke Power 1.8% SU Bonds Maturing on 9/1/21

Trade Snapshot ($2 Commission):

Profit Snapshot: +$23.91 

I discussed purchasing these bonds in Item # 1.C.

Finra Page:
Bond Detail

I sold these bonds at 98.23, netting 98.130 after a $2 brokerage commission. The YTM at 98.13 was 2.266% as of 6/6/17. The current yield at the net price is 1.83%.  

I bought these bonds at a total cost of 96.987. At that price, the YTM was 2.532% as of 2/22/17. The current yield at that total cost number is 1.86%.     


My thinking, as previously stated, was that the decline in bond yields was at or near the end when I started to lighten up some on intermediate term corporate bonds. 

Another factor was selling at a profit some low current yield bonds after quickly capturing some of the YTM excess over the current yield number. 

I will consider buying back when and if the price fall to more attractive levels.  

There may also be a trend reversal developing in intermediate term rates. The ten year treasury yield was in a downtrend, but appears to have bottomed near 2.14% (6/26/17) and is now moving back up. Daily Treasury Yield Curve Rates

It is still too early to call this recent movement a trend reversal IMO. The U.S. ten year yield will be influenced meaningfully by movements in 10 year debt issued by high quality sovereign issuers like Germany: Germany 10 Year Government Bond

The German 10 year closed at a .25% yield on 6/26/17 and at .37% yesterday. If European 10 year debt yields start to move up persistently, based on a perception that the ECB will at least start to take baby steps later this year to withdraw its extraordinarily abnormal monetary policies, then it will be like removing a lid holding down a pot of boiling water for comparable term U.S. debt.

A. Bought 2 State Bank of India 1.1% CDs Maturing on 9/18/17 (3 month CD):

I have a .75% Bank of China 6 month CD maturing on 9/15/17

B. Bought 3 Merchants Bank .9% CDs Maturing on 7/17/17 (one month CD)

I have two Merchants Bank .8% three month CDs maturing on 7/19/17. 

In my Fidelity and Schwab accounts, it still advantageous for me to buy short term CDs as an alternative to keeping funds in lower yielding brokerage sweep accounts.  

The Fidelity Government Money Market Fund (SPAXX) has a .42% expense ratio and a current yield of .41%.

Schwab is far worse at .05%.

3. Equity REIT Common and Preferred Stock Basket Strategy

I initially added 50 shares of HTPRD in two accounts. The price popped some after I purchases those two lots, possibly individuals buying shortly before the quarterly ex dividend date, and I sold my highest cost 50 share lots in both accounts where I had just made the purchases. 

HTPRD went ex dividend for its quarterly distribution of $.40625 per share on Wednesday (6/28/17).  

A. Bought 50 HTPRD in Roth IRA and Sold 50 in Same Account Thereafter

I bought  50 shares in my Roth IRA at $24.95, bringing temporarily my position up to 100 shares: 

I thereafter sold my highest cost 50 shares at $25.6: 

Profit: +$8.43

Transaction History Roth IRA Account: 

Just more small ball. 

B. Added 50 HTPRD in Taxable Account at $24.83 and Sold 50 Same Account at $25.65:  

I added 50 shares in my IB account, bringing the total up to 100 shares in that account.   

I then sold my highest cost 50 share lot at $25.65: 

Profit Snapshot: +$20.54

I now own 200 HTPRD shares in taxable accounts and 50 shares in a Roth IRA. 

The lowest cost lot is held in my Fidelity account, bought at a total cost per share of $22.88 (12/20/16). I discussed that purchase here.

Quote: Hersha Hospitality Trust 6.5% Cumulative Preferred Series D Stock (HTPRD)

The issuer is the REIT Hersha Hospitality Trust Cl A (HT)

HT's 2017 First Quarter Report and its 2016 Annual Report

Security Description: HTPRD is an equity preferred stock that pays cumulative and non-qualified dividends at the fixed coupon rate of 6.5% on a $25 par value. 
Final Prospectus Supplement

The issuer has the option to redeem at par value on or after 5/31/21.

The prospectus contains a typical Stopper Clause that prevents the issuer from deferring the preferred stock dividend while using cash to pay a common stock dividend or to buy common shares.

The Stopper Clause is the legal means by which the preferred stock's superior claim to cash is enforced against the common shareholders.

4. Continued to Pare Stock Allocation


Trade Snapshot: 

This ETF can be bought and sold commission free at Schwab. 

Profit Snapshot: $43.37

Quote  PowerShares S&P International Developed Low Volatility Portfolio ETF (IDLV)

This ETF is currently rated 3 stars by Morningstar.

Before I buy this one back, I will need a 20% correction. This ETF was sold due to underperformance since I bought my first lot. The ETF had outperformed the S & P 500 YTD through the date that I sold shares.

PowerShares S&P International Developed Low Volatility Portfolio (IDLV) Total Returns

YTD Through 6/7/17 = 14.61%
1 YR. 9.04%
3 Years Annual Average = 2.35%

SPDR® S&P 500 ETF (SPY) Total Returns

YTD Through 6/17/17 = 9.48%
1 Year = 17.49%
3 Years Annual Average = 9.96%

B. Eliminated SWASX:

Trade Snapshot:

Profit Snapshot: +$143.95

 SWASX Schwab Global Real Estate Fund Morningstar Page (4 stars)

The yield is too low for a real estate fund and the expense ratio is too high at 1.05%. I do own and have owned foreign REIT stocks bought on their local stock exchanges, avoiding the recurring expense ratio of a fund and receiving substantially higher yields particularly in Canada.

Disclaimer: I am not a financial advisor but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sell of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals and situational risks. I can only make that kind of assessment for myself and family members.

Sunday, June 25, 2017

Observations and Sample of Recent Trades: Eliminated KO at $45.85 (MAPTX, MCDFX, NVS, PRASX)

Trump chooses family event planner to run N.Y. housing programs - NY Daily News

Trump will never provide the public with accurate information. FactChecking Trump's Iowa Rally -

President Trump’s Lies, the Definitive List - The New York Times

The Fact Checker’s tally has a list of 669 false statements made by Donald just in his first 151 days as President.

Obama’s secret struggle to punish Russia for Putin’s election assault: WP article republished at MSN (the CIA "captured Putin’s specific instructions on the operation’s audacious objectives-defeat or at least damage the Democratic nominee, Hillary Clinton, and help elect her opponent, Donald Trump.")

By the way, Donald started saying the election was being rigged by the Democrats against him after reports leaked in early August that Russia was actively engage in efforts to help Trump win. 


It is not surprising that Donald drove his golf cart on a green, something he probably does all of the time:

Donald Trump Drives Golf Cart On The Green 

I started playing golf when I was 9. I have never seen or heard of anyone driving a golf cart on a green until now.  


New Homes Sales

New home sales recovered from their April slump by rising to a 610,000 seasonally adjusted annual rate last month. That is 8.9% above the May 2016 estimate. The average selling price of a new home was $406,400, with the median at $345,800. new residential sales.pdf Those prices create some concern about the affordability of new homes for first time buyers. 

Other recent economic data is discussed by Robert Johnson here.


Novartis (NVS)

I own 134+ shares. Of that number, 30 shares are owned in my IB trading account and the remaining shares are owned in another taxable account: 

I did not reinvest the dividends paid in 2014 and 2015. I discussed buying the 50 share lot in 2013 here. The shares have faced several headwinds over the past few years, including mediocre results from its Alcon division, an unexpected slow uptake of its heart failure drug Entresto, and loss of patent protection for its blockbusters Gleevec and Diovan.   

An Alcon Sale Will Take a Bargain Price - Bloomberg Gadfly
Novartis set to ride Entresto wave, says report | BioPharma Dive
Novartis braces for multibillion-dollar generics hit as Gleevec copies launch | FiercePharma

Over the past week, NVS released the results of several trials that have positively impacted the share price. 

U.S.D Priced ADR

June 20, 2017 $81.6
June 21, 2017 $82.56
June 22, 2017 $86.34 Volume 6.139+M Shares (average volume=2.267+M shares)
June 23, 2017 $86.34  

I discussed earlier the following press releases in a comment: 

Novartis RTH258 (brolucizumab) demonstrates robust visual gains in nAMD patients with a majority on a 12-week injection interval | Novartis (June 20, 2017)

Novartis Phase III study shows ACZ885 (canakinumab) reduces cardiovascular risk in people who survived a heart attack | Novartis (June 22, 2017)

The later press release caused a significant pop in the share price considering the size of the company. 

The following news releases were published last Friday: 

1. Novartis combination targeted therapy Tafinlar® + Mekinist® receives FDA approval for BRAF V600E mutant metastatic non-small cell lung cancer (NSCLC) | Novartis

The preceding FDA approval is discussed at FiercePharma

The targeted population for this combination treatment is small. One firm estimates that this indication will generate "sales of $315M for Tafinlar and $278M for Mekinist by 2025. NSCLC MARKET - Global Drug Forecast & Market Analysis to 2025 Those two drugs generated $672M in sales last year. Novartis acquired Tafinlar, Mekinist and other drugs from GlaxoSmithKline in 2015: Novartis announces completion of transactions with GSK | Novartis$16B deal for GlaxoSmithKline oncology meds turns Novartis into cancer heavyweight | FiercePharma Both drugs were previously approved for the treatment of metastatic melanoma.  (see also GSK sells cancer and multiple sclerosis drug to Novartis in $1bn deal - Telegraph)

2. Novartis data shows half of eligible Ph+ CML-CP patients remain in Treatment-free Remission nearly two years after stopping Tasigna® | Novartis

3, Novartis pivotal CTL019 6-month follow-up data show durable remission rates in children, young adults with r/r B-cell ALL | Novartis

4. Novartis Kisqali® (ribociclib) receives positive CHMP opinion as first-line treatment for HR+/HER2- locally advanced or metastatic breast cancer in combination with any aromatase inhibitor | Novartis

Novartis Quarterly Financial Results | Novartis
Novartis Q1 2017 Condensed Interim Financial Report – Supplementary Data
Novartis Financial Results Q1 2017


Tweak in Portfolio Management: Bonds

Over the past week or so, I have sold at profits investment grade bonds maturing in either 2025 or 2026.  

Those dispositions will be discussed briefly in subsequent posts. 

They include the following bonds:  

2 Apple 2.5% SU Bonds Maturing on 2/29/25

2 CSX 2.6% SU Bonds Maturing on 11/1/26

2 CVS 2.875% SU Bonds Maturing on 6/1/26

2 Exxon 2.709% SU Bonds Maturing on 3/26/25

2 Georgia Power 3.25% SU Bonds Maturing on 4/1/26

2 Pepsico 2.75% SU Bonds Maturing on 4/30/25

2 Procter & Gamble 2.7% SU Bonds Maturing on 2/2/26

2 Sysco 3.3% SU Bonds Maturing on 7/15/26 

2 Walgreens 3.45% SU Bonds Maturing on 6/1/26


The proceeds are being redirected to short term bank CDs or temporarily to cash. I may buy one or more of these bonds back in the Roth IRA, assuming I can buy at lower prices. All of the preceding bonds were bought in taxable accounts.   

I am continuing to sell a few low current yield bonds maturing in the 2019-2024 time period range with some of the proceeds being redirected into bonds with higher current yields and YTM's than the bonds referenced above.  

There are several reasons for lightening up on the 2025 to 2026 maturities. 

The primary reasons is that I just made a material allocation in longer term Tennessee municipal bonds with a weighted average tax free yield of 3%. That yield is greater than the taxable current yield of most of the corporate bonds that I sold. I am cognizant that I increased my portfolio's interest rate risk meaningfully with those municipal bond purchases and consequently dialed that risk back a tad by selling $18K in low yielding corporate bonds.  

I have freed up some cash, close to $32K, to buy back these corporate bonds or others in my Vanguard Roth IRA where their purchase makes more sense since I am at least able to turn the taxable yield into a tax free one.  Those funds are currently deposited in a Vanguard money market fund that yields over 1%, so I am in no rush to buy a high quality corporate bond maturing in 2026 with a 3% yield. 

Vanguard - Vanguard Prime Money Market Fund (SEC Yield at 1.05%)

I am being far more aggressive than in the past managing my bond and cash positions. Even though I have pared my stock allocation, my interest income this year will be significantly higher than my dividend and interest income in prior years.      


1. Added $650 To Asia Focused Mutual Funds:  

The precipitating event for this minor rotation out of cash was MSCI adding mainland China stocks to its emerging market index. Roughly $17 billion or more could now flow into Chinese stocks, MSCI exec says: CNBC  A catalyst will generally provoke some kind of response from me.

Last Friday, I added to my positions in the following mutual funds that have exposure to China: 

Matthews China Dividend Fund; Investor (MCDFX)

MCDFX Rated 5 Stars by Morningstar

Matthews Pacific Tiger Fund; Investor (MAPTX)

MAPTX Rated 5 Stars by Morningstar

T Rowe Price New Asia Fund  (PRASX) 

PRASX Rated 3 Stars by Morningstar 

PRASX is among the several vintage T.Rowe Price positions that were originally bought a long time ago and no shares have ever been sold.  

I eliminated Matthews China Dividend fund during a 2015 parabolic price spike:

2015 MCDFX 204+ Shares + $821.83
The price went from $13.4 (1/4/13) to $17.49 (5/31/13)-a fast 30.52% rise.  I sold on 6/3/15. I will generally sell minor positions into that kind of parabolic spike that has no underlying justification and simply wait for an opportunity to buy back when the parabola collapses upon itself which happened quickly in this case.  

I did not buy back shares in Matthews China Dividend fund until December 2016. I discussed that purchase here. I discuss there some of my reservations about China.

Overview - Matthews China Dividend Fund

I also eliminated at about the the 2015 summer my position in Matthews Asian Growth & Income Fund (MACSX):

2015 MACSX 565+ Shares +$470.62
I have not reinitiated a position in MACSX. 

Instead, I started a second position in the Matthews Pacific Tiger Fund after the China stock bubble burst: 

I am reinvesting the dividend in that account. 

Overview - Matthews Pacific Tiger Fund

In my Fidelity account, I have a lower per share cost Matthews Pacific Tiger Fund position, with some shares purchased in 2005-2006 and 2009: 

Average Cost Per share = $16.51
I have not reinvested the dividends in that account. 

This position was pared in 2007. Stocks, Bonds & Politics (Sold 32+ for a $338.62 profit)

2. Continued Paring Stock Stock Allocation:

Lately, I have been focusing more on eliminating or paring individual stock positions that have underperformed, are overvalued, and/or are currently facing significant headwinds.

A. Sold 265+ KO Shares at $45.85+:

Profit Snapshot: $5,338.55

Quote: KO Stock Price - Coca-Cola Co.
KO Analyst Estimates (P/E on 2018 Estimated Non-GAAP E.P.S.=23.17)

There is nothing to really like in trends for revenues, net income and E.P.S. for the past six years.

GAAP net income was $5.506B in 2016 and $8.634B in 2011.

Long term debt was at $13.656B as of 12/31/11. Page 78 2011 Annual Report

Long term debt was at $29.684B as of 12/31/16.  Page 75 2016 Annual Report

Free cash flow was $7.865B in 2012 according to Morningstar and $6.534B last year. Cash Flow for Coca-Cola Co (KO) from

Of the $6.534B in 2016 free cash flow, KO spent $3.681B to repurchase stock and another $6.043B was paid in dividends to common shareholders. The math does not add up. KO is borrowing a lot of money to pay the dividend and to repurchase shares.

Cash Used to Pay Dividends and To Buy Stock in 2016 = $9.724B

Free Cash Flow in 2016: $6.534B
Deficit = -$3.19B

A lot of new debt is being incurred to buy stock and to pay the dividends.

The trends are all negative. In my view, KO is overvalued and something will have to give on the dividend raises and/or stock buybacks. The refinancing of debt at much higher rates will only aggravate the situation.

I will need a price less than $38 before considering a small purchase.

KO is rated 3 stars by Morningstar with a $46 fair market value estimate.

Argus has a hold with a $46 price target.

Credit Suisse has a $49 price target and an outperform rating.

S & P has a 4 star rating and a $47 twelve month price target.

A five year chart shows peak prices hit in the $45-46.5 range that was followed by a slide back to $40. Coca-Cola

3. Intermediate Bond/CD Basket Strategy:

A. Sold 2 American Water Capital 3% SU Bonds Maturing on 12/1/26:

FINRA Page: Bond Detail

AWK Stock Price - American Water Works Co.
Moody's Upgrades American Water to A3

1 Bond Sold Out of Fidelity Taxable Account ($1 Commission)

Price: 99.139
Proceeds at 99.039
Total Cost at  98.785
YTM a 99.039 as of 6/1/17 = 3.118%
Current Yield at 99.039 = 3.03%

Profit Snapshot:  $2.54

Discussed at  Item # 1.C. (3/16/17 Post)

1 Bond Sold out of Vanguard Taxable Account ($2 Commission):

Price: 99.126
Proceeds at 98.926
Total Cost at 97.836  (YTM then at 3.238%)

Profit Snapshot: +$8.9

Discussed at Item #1.D.  (4/20/17 POST)

The ten year treasury closed at a 2.21% yield on 6/1/17: Daily Treasury Yield Curve Rates

I received the semi-annual interest payment on 6/1/17 ($16.17 per bond):

I am hoping to buy at least one bond back in a Roth IRA when the YTM is over 3.5%.

When I bought this bond in my Vanguard taxable account, I though that I was in my Vanguard Roth IRA account.

B. Bought 1 Ford Motor Credit 2.9% SU Bond Maturing on 6/20/22:

This bond was bought through Fidelity's corporate notes program. No brokerage commission is paid for those purchases. The bonds are newly issued and are sold at par value with no accrued interest.

C. Bought 2 Essex Portfolio L.P. 3.625% SU Bonds Maturing on 8/15/22-In a Roth IRA Account:

Issuer:  Operating Entity for Essex Property Trust Inc (ESS)

FINRA Page: Bond  Detail (prospectus linked)

Credit Ratings:
Moody's at Baa1
S & P at BBB+

YTM at Total Cost (103.756) = 2.805%

Current Yield =  3.49%

2017 ESS 1st Quarter Report

2017 First Quarter Supplemental Financial Information
ESS 2017 10-Q for the Q/E 3/31/17
ESS 2016 Annual Report

4. Long Term Bond Strategy: Tennessee Municipal Bonds:

A. Bought 5 Tennessee Housing Development 3.375% Revenue Bonds Maturing on 7/1/2038:

The quoted price in the preceding snapshot includes the $10 Schwab Commission.


Credit Ratings:

Moody's at Aa1
S & P at AA+

YTM = 3.367%

Current Tax Free Yield at Total Cost (100.123) = 3.371%

Optional Call: At Par Value on or after 7/1/25


B. BOUGHT 10 Washington County Tennessee 3% GO Bonds Maturing on 6/1/34:

Bought 5 in my Fidelity Account:


Credit Ratings:
Moody's at Aa2
S & P at AA

YTM at Total Cost (98.85) = 3.087%

Current Tax Free Yield = 3.03%

Washington County - Google Maps

Optional Redemption: At Par Value on or after 6/1/26


Tax Matters Excerpt:

I later bought 5 bonds in my Vanguard Taxable Account ($10 brokerage Commission):

YTM at Total Cost (98.953): 3.079%

Current Tax Free Yield: 3.03%

5. Short Term Bond/CD Basket Ladder Strategy:

A. Bought 3 Compass Bank 1.25% CDs Maturing on 12/28/17:

Disclaimer: I am not a financial advisor but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sell of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals and situational risks. I can only make that kind of assessment for myself and family members.