Observations and Sample of Recent Trades: CJREF, CYSPRA, GJT, HT, HTPRD

Economy:

Real GDP growth for the 2017 4th quarter was revised down to a 2.5% annual rate from 2.6% in the first estimate. News Release: Gross Domestic Product

The price index burst upward:

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Chicago Fed National Activity Index (CFNAI) - Federal Reserve Bank of Chicago

Chicago Fed index points to stalled U.S. economic growth in January - MarketWatch;

When the Chicago Fed National activity index declines to over -1 from positive territory, then historically it is time to worry about a recession which may have actually started or is about to start:

Chart: Chicago Fed National Activity Index -St. Louis Fed

The January number of .12 is still in positive territory but has been falling rapidly since hitting .91 in October.

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Powell Says Strong Outlook to Prod Fed to Review Rate-Hike Path - Bloomberg

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Pending-home sales tumble to a 3-year low as housing ‘crisis’ worsens - MarketWatch

Pending Home Sales Stumble 4.7 Percent in January | www.nar.realtor

U.S. 10 Year Treasury Note-MarketWatch

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Market Commentary and Markets:

The stock-market correction isn’t over, but Powell isn’t the problem, says Blackstone’s Wien - MarketWatch

Warren Buffett explains why Berkshire can’t find companies to buy at a ‘sensible’ price - MarketWatch

Veteran manager of $22 billion bond fund spots the ‘No. 1 opportunity’ - MarketWatch

Oil to edge higher in 2018 as OPEC cuts help offset U.S. supply growth: Reuters poll

Are muni bonds still a safe investment bet? CNBC

This city saw the biggest home price growth in 2017 — and it’s NOT on the West Coast - MarketWatch (The Nashville metropolitan area was third with a 12.5% gain but the median price home is $224,900. Kansas City was first with a 13.4% gain with a median price home at 172,098. San Jose Metropolitan area, which includes Santa Clara and Sunnyvale was second with a median price home at $960,000. I remember writing about San Jose during the housing crash period. I was referencing then a USA Today article published in March 2009 that San Jose home prices have risen to the point that only 16% of median income households for that locality could afford a median price house. The median price home had risen to $664,444 in 2008 and had declined to $415,000 in early 2009. San Jose would be the kind of place where the Triple Whammy would be an issue now: (1) higher prices; (2) higher interest rates; and (3) takeaways of tax incentives.) 

I found the 2009 article that was cited in my blog: 

Dramatic price drops bring San Jose homes within reach- USATODAY.com

My personal belief, reiterated many times here, is that most humans rarely learn anything useful or accurate from current events or recent history, let alone from most distant memories that were experienced and particularly those events in history books that are almost entirely unknown. Donald would be an example. It is those humans who frequently make the decisions that negatively impacts those who have good information and have learned from experience.  

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Trump:

Trump blasts Sessions again: 

The Justice Department's Inspector General is the appropriate person to investigate whether the DOJ abused its power when seeking FISA surveillance warrants on Carter Page. 

Why would anyone worth a damn want to work for Donald in the White House and subject themselves to the kind of abuse that he regularly heaps on just about everyone?  

Trump tweets: 'Disgraceful' that Sessions kicked surveillance probe to Obama appointee

CNN: Trump 'berated' Hicks after House Intel testimony

New details about Hope Hicks' White House departure ("a puddle of tears" after Trump berated her for being so stupid for telling the truth)

Hicks resigned the day after telling Congress that she had to tell "white lies" for Trump. Donald Trump reportedly 'berated' Hope Hicks for saying she told 'white lies' | The Independent In Donald's world, you are supposed to lie about telling lies. 

AP-NORC Poll: Most Americans say Trump is racist

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So Donald would have run into the Florida school building and confronted an active shooter with an AR-15 even if he did not have a gun. Trump says he would have run into Florida school without a weapon - NBC News Gosh, Donald is so brave and so interested in the welfare of those who are not Donald-with words that is. 

Trump said he would charge a gunman. Here’s what he’s actually done in the face of danger.

Maybe he could have demonstrated his bravery during the Vietnam War period with actions rather than words but that was not to be. 

When confronted with the opportunity to prove his bravery, he dodge military service due an alleged "bone spur" that miraculously healed after the war ended. 

According to Donald and in his own words,  he did his service by avoiding the transmission of venereal disease. Donald Trump Calls Avoiding STDs His 'Personal Vietnam' | PEOPLE.com 

Perhaps Donald could have used his bone spur as a weapon to stop the Florida shooter. 

It would take a brave person to confront an active shooter, armed with an AR-15, with a handgun. To expect teachers to do so, with a favorable outcome, is pure fantasy. 

Then you could easily have a teacher going berserk in a classroom with a gun which just happened in Georgia. 

Florida Senate Rejects Assault Gun Ban-Votes to Arm Teachers 

One big problem with the idea of arming teachers: Insurance companies won't play along, and for good reason 

I missed the Blessing the AR-15 ceremony at the Sanctuary Church in Newfoundland, PA., since I do not own a gun, nor do I have a crown made of AR-15 bullets or a white robe. 

Perhaps, if I bought an AR-15, I could use it to remodel my home. I have been thinking that a wall needs to come down in order to open up an area. I could blast that wall with the AR-15, using a bump stock for maximum effect, rather than using a sledgehammer to knock it down. I would exert myself for less with the AR-15 knock down method.  

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Trump's new campaign chief has a close relationship with a penny stock that's tied to a felon: CNBC

Donald, I know that you love Putin and Russia for reasons that may or may not become clear, but that love may not be returned in 2020. 

And you prefer for some reason to believe Putin's denial of any Russian interference in 2016, rather than to accept the hard facts presented to you by U.S. intelligence agencies. 

Since Russia may not intervene to help you in 2020, and may Lord Forbid even help the Democrats after seeing you in action for 4 years (you know the Libtards), you may want to actually do something to make it more difficult for Russia to interfere in the U.S. election process. Cyber chief says Trump has given him no new authority to strike at Russian interference threat - The Washington Post  

U.S. intel: Russia compromised seven states prior to 2016 election - NBC News

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The Lt. Governor of Georgia, Casey Cagle (R), decided to attack Delta Airlines, one of Georgia's largest private employers, for electing to discontinue its rewards program with NRA members: 

So a private company has to do business with the NRA or be punished by the Georgia republicans for failing to do so. Georgia's Lt. Gov. Threatens To Kill Tax Break For Delta Air Lines-NPR  

State Senator Michael Williams (R-GA), who is running for Governor in Georgia, supports Cagles' approach. 

Georgia gubernatorial hopeful to hold bump fire stock giveaway; 

Williams' claim to fame is for holding a bump stock giveaway and claiming the use of the bump stock by the Las Vegas shooter resulted in fewer causalities. Remember that it was not that long ago that Georgia elected Lester Maddox as Governor whose previous claim to fame was wielding an ax handle against African Americans who wanted to eat at his restaurant. You see, he wanted to stop their "invasion". 

Did bump stocks prevent more casualties in Las Vegas? | PolitiFact Georgia (rated false of course)

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1. Added 50 GJT at $20.03: 

QUOTE: Synthetic Fixed-Income Securities Inc. STRATS Trust for Allstate Corp. Securities, Series 2006-3 (GJT) 

GJT is a Synthetic Floater in the Trust Certificate legal form of ownership. The security falls under the general category of Exchange Traded Bonds.

This purchase brings me up to 250 shares. 

GJT Prospectus

Par Value: $25

Coupon: .85% above the 3 month treasury bill rate with an 8% maximum  

Daily Treasury Yield Curve Rates

3-Month Treasury Constant Maturity Rate-St. Louis Fed

Assume a 1.5% 3 month T Bill rate. GJT's coupon becomes 2.35%. Yield at a TC per share of $20.03 would then be 2.933% (.0235% coupon x. $25 par value = $.5875 annual interest payment per share ÷ $20.03 Total Cost Per Share = 2.933%). 

The maximum coupon of 8% is hit when the 3 month treasury bill is 7.15% or higher. The yield at an 8% coupon would be about 9.985%. The coupon at a zero percent 3 month treasury rate would be .85% resulting in a yield of about 1%. 

There would also be a profit when the bond matures that would add to the yield, assuming nothing untoward has happened to GJT and Allstate survives to pay the principal amount of the bonds owned by the trust that would then result in payments of the GJT $25 par value per Trust Certificate.  

Frequency: Monthly Interest Payments

This snapshot shows the monthly interest rates trending up on a 100 share lot held in my Schwab account: 

This is the trend on a 50 share GJT lot in the same account that goes back to January 2016: 

Underlying Security: Allstate SU Bond Maturing on 4/1/36

Underlying Bond Prospectus: Make Whole Provision at page S-5

The Trust Certificate matures on the same date. 

The owner of GJT is exposed to the credit risk of the Allstate bonds owned by a Grantor Trust administered by an independent trustee. 

The Trustee collects the interest paid by Allstate and then swaps that amount with the swap counterparty for what is owed the GJT owners.  

Last Discussed: Item # 2 Added 50 GJT at $17.55-Update For Exchange Traded Bonds And Preferred Stocks Basket Strategy As Of 4/14/16 - South Gent | Seeking Alpha

That lot is still owned. This brings me up to 100 share in my IB account with an average total cost per share of  . 

I also own 100 shares in my Schwab account with an average total cost per share of $18.46.

I discussed the purchase of 50 of those 100 shares held in my Schwab account. Item # 3 Item # 3.A. Bought 50 GJT at $19.5 (7/8/17 Post). That is probably my most recent discussion.  

I own 50 shares in a Vanguard IRA:
   

Item # 3 Bought 50 GJT at $17.97-Roth IRA (3/28/15 Post)

Trading Profits To Date= $575.95 (snapshots in Gateway Post for Trust Certificates)

Sample of Prior Discussions: 

Bought 100 GJT at $8.3 (4/6/09 Post)

Sold 50 GJT at $13 (6/20/09 Post)

Item # 4 Sold 50 GJT at $17.5 (12/31/2009 Post)

Item # 3 Bought 50 GJT at $18.15-Roth IRA (7/22/11 Post)

ROTH IRA: SOLD 50 GJT at $18.9 (6/15/2013 Post)

Largest Realized Gain: 2009 on a 100 Shares in a Roth IRA at +$472.45

Closing Price 2/28/18: GJT $19.99 +0.05 +0.23% (600 shares traded/limit orders have to be used/bid-ask spread is usually large)

2. Added 50 CJREF at US$6.37-Used Commission Free Trade: 

Closing Price Day of Trade (2/13/18): CJREF $6.3694 -$0.2515 -3.80%-CORUS ENTERTAINMNT (ex dividend date)
Dividends: Monthly at C$.095 (C$1.14) annually.
Dividends - Corus Entertainment

Next Ex Dividend Date: 3/14/18 TMX

Last Discussed: Stocks, Bonds & Politics:Item #1.A. Bought 50 CJREF at U.S.$6.62-Roth IRA Account and Bought 50 CJR.B at C$8.2 IB Account(1/25/18)

Those two purchases highlighted in bold letters are the same ordinary Corus shares. The difference is that CJREF is traded on the U.S. pink sheet exchange and is priced in USDs with the dividend paid in USDs after conversion from the CAD payments. CJR.B is traded in Toronto and priced in CADs. I will receive the dividend payments in CADs. I now own 150 CJR.B shares and 100 CJREF shares as trades. 

I have nothing to add to my most recent discussion.

Closing Price 2/28/18: CJREF $6.26 -$0.03 -0.48% 


3. Fixed Coupon Cumulative Equity Preferred Stocks: 

I decided to make two small purchases of REIT cumulative preferred stocks. 

Those purchases are made pursuant to a general strategy where I play alternative future scenarios including those which I view as unlikely. 

Positions are weighted based on my opinions about the odds. 

Since I view a rise in intermediate term interest rates as the likely future outcome this year, any purchase of a fixed coupon equity preferred stock will be underweighted and would constitute a contrarian approach to my own opinions about the near term future.  

I do not favor fixed coupon equity preferred stocks, though I will own them to generate additional income. 

These securities have the undesirable attributes of common stock without having the main benefit which is an equity interest in the business. 

Fixed coupon equity preferred stocks are more bond like without the superior claim of bonds in the capital structure. I view them as a amalgamation of undesirable attributes of common stocks (equity capital) and bonds.    

Trading profit snapshots for both REIT and Non-REIT fixed coupon equity preferred stocks can be found at the end of this post: Stocks, Bonds & Politics: Advantages and Disadvantages of Equity REIT Cumulative Equity Preferred Stocks

Fixed coupon equity preferred stocks are a minor niche category for me. 

Trading Profits 2008 to Date: $10,945.08

A. Bought 50 HTPRD at $22.98-Used Commission Free Trade:

Quote: Hersha Hospitality Trust 6.5% Cumulative Preferred Series D Stock
Issuer: Hersha Hospitality Trust Cl A (HT)-A Hotel REIT
Issuer's Webpage: Hersha Hospitality Trust
Last Earnings Report: Hersha Hospitality Trust Announces Full Year and Fourth Quarter 2017 Result

I discuss buying 50 HT common in Item # 4 below.

Par Value: $25

Issuer Optional Redemption: On or After 5/31/21

Dividends: Paid Quarterly/Cumulative and Non-qualified 

Dividend Yield at $22.98 Total Cost Per Share = About 7.07%

2017 Dividend Tax Classification-Non-Qualified: 

Hersha Hospitality Trust Announces Dividend Classification for 2017  

I eliminated my position last Fall based on concerns about rising intermediate term rates which will cause potentially preferred stocks to fall in price:

Item # 1.A. Sold Last 50 HTPRD Shares at $25.85 (10/9/17 Post)-Item # 3.A. Bought 50 HTPRD at $24.95 (6/29/17 Post)

It was the uptrend in the 10 year yield that started in early September 2017 that caused this recently purchased lot to be jettisoned. This change in interest rate direction precipitated the liquidation of almost all U.S. fixed coupon preferred stocks.

Item # 2 Sold 150 HTPRD at $25.8  (9/18/17 post)

HTPRD Trading Profits To Date: $313.49

I will consider buying another 50 shares between $19.5-$20.25. For that range to be hit, there would need to be a further spike in intermediate term interest rates or a major adverse change in HT's credit risk.

The consider to sell target would be $24+ after collecting at least one quarterly dividend payment. That price is unlikely to be hit unless there is a significant downtrend in intermediate term rates or irrational buying by individual investors at current or higher intermediate term rates.

This position will be included in this basket strategy: Equity REIT Common and Preferred Stock Basket Strategy

B. Bought 50 CYSPRA at $24.5- A Roth IRA Account: 

Quote: CYS Investments Inc. Cumulative Preferred Series A Stock 

Issuer: CYS Investments Inc.- A MREIT 

Last Earnings Report: CYS Investments, Inc. Announces Fourth Quarter and Year Ended 2017 Financial Results 

Prospectus: Prospectus Supplement

Par Value: $25

Coupon: 7.75%

Issuer Optional Call: On or After 8/3/17

Dividends: Cumulative and Quarterly at 7.75% per Annum Paid on a $25 Par Value; $.0484375 per share quarterly CYS Investments, Inc. - Investor Relations - Preferred Stock

Yield at Total Per Share Cost of $24.64 (with $7 commission) = 7.863% (tax free in Roth IRA)

Dividend Tax Classifications: Preferred Stock Dividend Taxation (previous classifications were non-qualified ordinary dividends-unfavorable tax treatment due to pass through REIT status)

Most Recent Discussions : 

Item # 4.A. Sold 50 CYSPRA at $25.33  (9/3/17 Post)(profit snapshot=$71.61) 

Stocks, Bonds & Politics: Observations and Sample of Recent Trades:Item # 2.A. Sold 50 CYSPRA at $24.89 (4/11/17  Post)(profit snapshot=$16.72) 

I will drag and drop here an earlier discussion relating to this security and MREIT equity preferred stocks in general: 

CYS is a mortgage REIT. I view preferred stocks issued by mortgage REITs to be riskier than those issued by equity REITs. I have explained why in many posts here. And will drag and drop here a typical long discussion.

The preferred stock of a REIT has none of the positive characteristics of common stock, including an ownership stake in the business, and has all of the negative attributes.

The fixed coupon preferred stock, like CYSPRA, has a nominal similarity with a bond but compares negatively with bonds in all other important respects.

The preferred security is junior in priority to all bonds and senior only to common stock. 

Unlike a bond, there is no maturity. The protection against a call is limited to generally five years after issuance and then the issuer has the option to redeem or stick the preferred owners with a non-competitive yield in a rising rate environment.

An appropriate description of the issuer's call option right is tails I lose and head's the issuer wins. 

If rates fall, the issuer will redeem and refinance at or after the call date depending on interest rates at that time. 

If rates rise a lot, the issuer will be happy to stick those owners with a non-competitive yield that can most likely only be sold for a loss when bought today in an abnormally low and artificial yield environment.

I am in a drop of the hat trading pattern for these securities. I do not need much of a profit to sell the shares, particularly when the shares were bought near par value, after collecting one or more dividend payments and being able to sell the shares profitably. This is just another example of small ball.

Mortgage REIT Preferred Are Viewed Here at HQ As More Risky in General Than Equity REIT Preferred Shares:

According to REIT.Com, the average debt to total assets ratio for equity REITs is about 31.7%. REIT.com; Equity REITs Have Lowest Debt Ratio In 20 Years | REIT.com

It is at least conceivable that an equity REIT preferred stock would have some value in a BK, though I am familiar with at least one example where the preferred ended up worthless. That was a special case since the REIT was loaded up with debt in a private equity buyout (Innkeeper's Trust).

While other investors may differ with my opinion on the matter, I am consequently more nervous about preferred stocks issued by Mortgage REITs than by traditional equity REITs.

Both suffer from the risk associated with the absence of a cash cushion. After all, money is flying out the door every quarter to the common shareholders. 

To maintain the REIT tax status, at least 90% of the net income has to be paid out to the common shareholders. For an owner of an equity preferred stock, I would obviously prefer having most of that money retained by the corporation.

Both types of REITs are leveraged with debt, but there is a huge difference in debt to total asset value ratio. 

An equity REIT may be carrying both senior unsecured debt and/or mortgages, but the amount of debt will generally be 50% or less of the fair market value of the assets owned by the traditional REIT. The REIT could experience a dramatic decline in property values and still have something left for a preferred shareholder in a bankruptcy. 

While the mortgages owned by the MREIT are more liquid than the property owned by the traditional REIT, the possibility of a downward spiral leading to a bankruptcy and a total loss for preferred shareholders is far greater with the Mortgage REIT due to their greater leverage and less equity than the far less leveraged traditional REIT. "Should Investors Unload Their Mortgage REITs?" - Advisor Perspectives

The Mortgage REIT will have a much greater dependency on short term debt. In a credit crisis, similar to the one recently experienced, liquidity can dry up pretty quickly, leading to a liquidity driven adverse event.

I would also have a concern about a quick and unforeseen spike in short term interest rates, particularly one occurring at the same time as a decline in value of the paper bought by the Mortgage REIT with borrowed money.

Taking the potential downside risks and the upside which will likely involve almost exclusively the receipt of income, I will only invest small amounts in preferred stocks issued by Mortgage REITs.

In short, MREIT equity preferred stocks are classified as more disfavored securities here at HQ's Trading Desk than equity preferred stocks. As a result of that classification and the relatively high yield, any profit on the shares after harvesting several dividend payments is viewed as a victory. 

At least the non-qualified dividends become tax-free when a REIT preferred or common stock is held in a retirement account; the dividend yield comfortably exceeds the inflation rate; and is sufficiently high that a real total return may be possible even with a small loss on the shares-depending on the size of the loss and the number of dividends.  

4. Equity REIT Basket Strategy:  

A. Bought 50 HT at $17.37- In a Roth IRA Account: 

Quote: Hersha Hospitality Trust Cl A (HT)

"Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale hotels in urban gateway markets. The Company's 49 hotels totaling 7,584 rooms are located in New York, Washington, DC, Boston, Philadelphia, Miami and select markets on the West Coast." Hersha Hospitality Trust

Map of Properties by Region

Dividend: Quarterly at $.28/Non-Qualified

Hersha Hospitality Trust - Dividends

The quarterly dividend was raised to $.28 from $.24 effective for the 2014 third quarter.

There was a 1 for 4 reverse stock split take took place on 6/23/15. HT Split History

Dividend Yield: 6.45% at a TC of $17.37 per share

2017 Dividend Tax Classifications-Non-Qualified With Some ROC:

Hersha Hospitality Trust Announces Dividend Classification for 2017 

Chart: Bear Trend

Using a one year YF chart, the stock broke through its 200, 100 and 50 day SMA lines in early February 2018. HT Chart 

Recent Earnings Report: 

Hersha Hospitality Trust Announces Full Year and Fourth Quarter 2017 

Hersha's results for 2017 were negatively impacted by hurricanes that damaged its south Florida properties. 

The company is being aggressive for a REIT in repurchasing shares. "In the fourth quarter 2017, the Company repurchased approximately 1.7 million common shares for an aggregate repurchase price of $30.4 million. ... In the fourth quarter 2017, Hersha’s Board of Trustees approved a new share repurchase program of up to $100 million of the Company’s outstanding common shares"

2018 Outlook:

The midpoint in the AFFO guidance is at $1.97 per share. Assuming that number is what actually occurs, the P/AFFO at $17.37 is about 8.82.

More Details on 2018 Outlook:

Last Sold and Bought: Item # 2.B. Sold 50 HT at $18.58-Used Commission Free Trade (2/8/18 Post)-Item 5.B. Bought 50 HT at $17.41 (12/18/17 POST)

I had no position prior to this last 50 share purchase. 

Prior Discussion:

Item # 1 Bought 50 HT at $18.25 Roth IRA Account-Update For Equity REIT Basket Strategy As Of 8/27/16 - South Gent | Seeking Alpha

History in this Roth IRA Account:

Trading Profits to Date=  $230.89

I will reinvest the dividend in this account until the price exceeds $19. 

B. Bought 10 HT at $16.83-Used Fidelity Commission Free Trade: 

Due to the recent price decline, I started a 10 share buying program in my Fidelity account. 

5. Short Term Bond/CD Ladder Basket Strategy:

A. Bought 2 Quest Diagnostics 2.5% SU Bonds Maturing on 3/30/20:

FINRA Page: Bond Detail (prospectus linked)

Issuer: Quest Diagnostics Inc.  (DGX)

DGX Analyst Estimates

Quest Diagnostics Reports Fourth Quarter And Full Year 2017 Financial Results; Provides Guidance

Credit Ratings:

Bought at a Total Cost of 99.75

YTM at TC Then at 2.621%

Current Yield at TC = 2.5063%

On the day of this purchase, the two year treasury note closed at a 2.1% yield.

2018 Daily Treasury Yield Curve Rates

Fidelity's order book showed the same number of bonds and the same 2 bond minimum order at 99.675 or .025 higher than IB. The YTM before the $2 commission cost was shown as 2.658%. 

I paid 99.65 at IB which was a 2.67% YTM or a .012% difference in favor of IB. While that is not much, it is common to see different quote information from different brokers that clearly involve the same seller. In this case, the seller had 41 bonds with a 2 bond lot minimum order.

B. Bought 1 Deere Capital 1.95% SU Bond Maturing on 12/13/18-A Roth IRA Account:

As shown in the following snapshot, I was reinvesting the proceeds received from a maturing 3 month CD.

FINRA Page: Bond Detail

Issuer: John Deere Capital, a wholly owned subsidiary of Deere & Co. (DE)
DE Analyst Estimates
Deere Reports First-Quarter Loss of $535 Million, Including Effect of U.S. Tax Reform Legislation; Adjusted Net Income Totals $430 Million;

Credit Ratings:  

John Deere - Fixed Income
Fitch Affirms Deere at 'A' on Plans to Acquire Wirtgen; Outlook Stable

Bought at a Total Cost of 99.976
YTM at TC Then at 1.978%
Current Yield at TC = 1.9505%

C. Bought 1 More Deere Capital 1.95% SU Bonds Maturing on 12/13/18-Taxable Account:

See Item B. above

Bought at a Total Cost of 99.850
YTM at TC Then at 2.137%
Current Yield at TC = 1.9529%

D. Bought 1 Deere Capital 1.75% SU Bond Maturing on 8/10/18:

This Deere Capital bond matures about 3 months earlier than the one discussed above.

FINRA Page: Bond  Detail (prospectus linked)

Bought at a Total Cost of 99.947
YTM at TC Then at 1.862%
Current Yield at TC = 1.7509%

E. Added 1 Stanley Black & Decker 1.622% Junior Bond Maturing on 11/17/18:

FINRA PAGE: Bond Detail (prospectus linked)

This bond is "subordinated" to SWK's senior unsecured debt in the capital structure.

Issuer:  Stanley Black & Decker Inc. (SWK)
SWK Analyst Estimates
Stanley Black & Decker Reports Full Year And 4Q 2017 Results

Credit Ratings Junior Bonds:

Senior unsecured debt is currently rated Baa1 and A. SWK junior bonds are rated one notch lower. I have no current concerns about the credit risk prior to maturity.

Fitch Affirms Stanley Black & Decker's IDR at 'A-'; Outlook Stable (junior bonds at BBB+)

Bought at a Total Cost of 99.588
YTM at TC Then at 2.175%
Current Yield at TC = 1.6287%

I now own 5 bonds.

F. Bought 1 Treasury 1.75% Coupon Maturing on 10/31/18- In A Roth IRA Account:
YTM = 1.844%

G.  Added 1 Caterpillar Finance 1.8% SU Bond Maturing on 11/13/18- In A Roth IRA Account:

FINRA Page: Bond Detail

Credit Ratings:

Bought at a Total Cost of 99.752
YTM at TC Then at 2.137%
Current Yield at 1.8045%

I now own 3 bonds. This is the kind of bond that I will continue to buy in one bond lots provided the YTM increases some and I am closer to maturity than now. Generally I will stop at 5 or 6 bonds.

H. Bought 1 Washington Federal 1.7% CD (monthly interest payments) Maturing on 10/2/18:

Holding Company: Washington Federal Inc. (WAFD) 
WAFD Analyst Estimates 

This CD just partially fills a gap in my October maturities. Investment grade corporate bonds maturing at about the same time have slightly higher YTMs but do not pay monthly interest and none are available at less than par value. I am also light in October maturities due to the current paucity of CDs and bonds maturing in that month that I am willing to buy.  

I. Bought 2 Abbott Laboratories 2% SU Bonds Maturing on 9/15/18: 

FINRA Page: Bond Detail (prospectus linked)

Issuer: Abbott Laboratories (ABT)
ABT Analyst Estimates
Abbott Reports Fourth-Quarter 2017 Results

Credit Ratings:

Bought at a Total Cost of 99.979
YTM at Total Cost Then at 2.036%
Current Yield at TC = 2.0004%

On the day of purchase, the 6 month and 1 year treasury bills closed at a 1.83% and 2% yields respectively. I pick up a slightly better yield with this Abbott bonds' YTM of 2.036% and its 7 month maturity. I have no current concerns about the credit risk.

J. Bought 3 First Republic Bank (SF) 1.4% CDs Maturing on 4/23/18: 

Holding Company First Republic Bank (FRC) 
FRC Analyst Estimates 
First Republic Reports Strong 2017 Results 

5. Long Term Bond Strategy: 

A. Sold 1 Qwest Capital 7.75% SU Bond: 

This bond represented a temporary foray into junk bond land. I will trade this one occasionally. 

Profit Snapshot: +$39.69

Item # 4 Bought at TC of 87.6817 (11/26/17 Post) 

Prior Round-Trip Item # 2.B. Sold 1 Qwest SU 2031 Bond (2/21/17 Post)

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.