Economy:
Powell is talking like he means business when it comes to fighting problematic inflation. Powell warns of 'some pain' ahead as Fed fights to lower inflation; Speech by Chair Powell on monetary policy and price stability - Federal Reserve Board (8/26/22)
There remains a divergence between the FED's subdued forecasts for FF rate increases, last made in its June FOMC Projections, and Powell's tough talk of doing whatever it takes to bring inflation under control.
June 15, 2022 Dot Plot for FF rate:
Contrary to Powell's statements, I doubt that the FF rate increases to date have had or will have any meaningful impact on inflation. The economic slowdown is not caused by those minor rate hikes coming off ZIRP but mostly to problematic inflation negatively impacting discretionary consumer purchases and the absence of helicopter money raining down on households from the federal government.
30 Year Fixed Mortgage Rates - National Average The interest rate has resumed its upward trend. Abnormally low mortgage rates for over a decade has led to another housing price bubble IMO.
Home prices weaken but are still much higher than a year ago: S&P Case Shiller
The housing recession will continue and eventually flatten house prices, Goldman Sachs economist says - MarketWatch If interest rates continue to rise, the end result will not be a slow down in home price increases, but a meaningful decline from record high prices.
Over the month, the market has increased the odds of a .75% increase in the FF rate after the FED's September meeting:
The year end forecast for the FF rate has been moving up as well:
++++
FBI’s Mar-a-Lago search followed months of resistance, delay by Trump - The Washington Post (very detailed account of the events leading up to the search warrant); Full text of National Archives letter to Trump on classified documents | Just The News (Letter dated 5/10/22) Trump falsely claimed that he was cooperating even though the evidence is irrefutable that he was obstinate in keeping the classified documents.
Archives asked for records after Trump lawyer agreed they should be returned, email says - The Washington Post (The National Archives started its effort to secure government records in Trump's possession 100 days after he left office.
Ryan Zinke, former interior secretary, lied to investigators in casino case, watchdog finds - The Washington Post Zinke is the republican nominee for Montana's congressional seat and is expected to win.
On Truth Social, QAnon Accounts Found a Home and Trump’s Support - The New York Times So far Trump has approvingly reposted 65 messages from QAnon supporters.
Slithering Senator Graham (R-SC) had this to say about prosecuting Trump for a crime: “Most Republicans, including me, believe when it comes to Trump, there is no law. It’s all about getting him . . . And I’ll say this: If there’s a prosecution of Donald Trump for mishandling classified information after the Clinton debacle … there’ll be riots in the streets.”
Don Bolduc has a wide lead in republican primary for the New Hampshire senate seat, currently held by Maggie Hassan (D). Poll.pdf Bolduc wants to abolish the FBI; claims that Trump won the 2020 election; wants to repeal the 17th Amendment that requires the direct election of Senators; denounced the provision in the Inflation Reduction Act that allowed Medicare to negotiate some drug prices; and has called the incumbent republican governor a "Chinese Communist sympathizer". In New Hampshire, Republicans Weigh Another Hard-Right Candidate - The New York Times; Republicans can’t let go of their interest in the 17th Amendment The primary will be held on 9/13.
I doubt most American could pass a 9th grade civics test, maybe answering 5 or less out of 20 questions correctly. A chimpanzee capable of marking the answer to multiple choice questions may do better than many humans.
Before the 17th Amendment was adopted, the Constitution provided that state legislatures would choose U.S. Senators. 17th Amendment to the U.S. Constitution: Direct Election of U.S. Senators (1913) | National Archives Going back to that process would insure that republicans, who control state legislatures in swing states (e.g. Wisconsin, Arizona, Georgia), will be able to appoint Trumpster candidates as Senators even though those persons would or could lose a popular election. The appointment process before the 17th Amendment was rife with corruption.
I doubt that most Russians even know that the initial invasion included a failed attempt to capture Kiev and decapitate the government by killing Zelensky and virtually any Ukrainian that opposed Putin as their Dear Leader and the kleptocracy that comes with his dictatorship. Battle for Kyiv: How Ukrainian forces defended and saved their capital - Washington Post The Russian Army failed miserably and that was before the influx of western military aid. Russia did manage to murder large numbers of unarmed civilians and destroyed virtually all civilian structures in its path.
Holding Russia to Account for War Crimes in Ukraine | Vanity Fair
+++
1. Eliminated SHEL in Schwab Account - Sold 38+ Shares at $55.05:
Profit Snapshot: +$831.18
Last Buy Discussion: Item # 1.F. Added to RDSB-Bought 1 at $34.08; 1 at $28.9, 1 at $27.61; 1 at $24.88; 1 at $24.18- Schwab Taxable (5/23/20 Post)
Dividend: Quarterly at $.50 per share
As previously discussed, Shell slashed the quarterly rate from $.94 to $.32 effective for the 2020 second quarter payment. Exxon and Chevron did not cut their dividends.
Last Ex Dividend: 8/11/22 (owned all as of)
Last Earnings Report (Q/E 6/30/22): SEC Filing
Adjusted Earnings = $11.472B or $3.o8 per ADR, up from $1.42.
Adjusted earnings exclude $4.3B of tax impairment reversals and $1B of mark-to-market gains.
Revenues: $100B, up 65%
Analyst Reports (available to Schwab customers):
Morningstar (7/28/22): 3 stars with a FV of $62, no moat.
S&P (8/1/22): 3 stars with a 12 month PT of $54.
Argus (8/5/22): Buy with a $67 PT
Sell Discussions:
Item # 5. Pared SHEL in Schwab Account - Sold All Shares with a Cost Basis over $50 at $58.34 (4/28/22 Post)(profit snapshot = $84.89)
Item #1.P. Pared RDS/B in Schwab Account - Sold 5 at $49.36 (10/22/21 Post)(profit snapshot = $16.76)
Item # 3.D. Sold All Remaining Shares Purchased with Dividends in Fidelity Account at $40.14 (10/8/21 Post)(profit snapshot = $2.39) This reduced my AC per share in that account to $25.76 (14 shares), which I still own.
Item # 2 Eliminated Royal Dutch Shell - Sold 52+ at RDS/A at $70.85 and 51 at $70.83 LIMIN. (1/28/14 Post)(profit snapshots = $325.89)
Discussed at Buy Shell Stock. The Energy Giant Looks Like a Bargain. | Barron's (5/14/22)
There was an exceedingly strange parabolic up move in WTI during the 2008 recession that can not be justified by facts or reason. WTI should have been declining rather than rising to over $140 per barrel.
Crude Oil Prices: West Texas Intermediate (WTI) - Cushing, Oklahoma -St. Louis Fed
Remaining SHEL positions in Taxable Accounts:
Fidelity: 14 shares with a $25.76 average cost per share.
Vanguard: 10+ shares with a $27.51 average cost per share
I have probably not discussed the small ball purchases in my Vanguard Account:
 |
| Excludes shares bought with dividends |
I quit reinvesting the dividend after the 2022 first quarter payment.
2. Corporate Bonds and CD:
All discussed out of time order.
A. Bought 2 Centerpoint 2.5% SU Maturing on 9/1/24 at a Total of 96.82:
%20.png)
Issuer: CenterPoint Energy Inc. (CNP)
I have owned the common stock but have eliminated my positions. The CNP subsidiary Houston Electric issues first mortgage bonds, and those have higher credit ratings than the ones issued by the parent (e.g. Centerpoint Houston Electric rated A2/A) The other utility owned by CNP is Indiana Electric. 2021 Annual Report
CNP Analyst Estimates | MarketWatch
SEC Filed Earnings Press Release for the Q/E 3/31/22
SEC Filed Press Release for the Q/E 6/30/22
Finra Page: Bond Detail (prospectus linked)
Credit Ratings: Baa2/BBB
YTM at Total Cost = 4.072%
Current Yield at TC = 2.5821%
B. Bought 2 Centerpoint 2.5% SU Maturing on 9/1/24 at a Total Cost of 96.635:
%20.png)
This is the same bond discussed above, but in a different taxable account a few days after the previous purchase.
YTM at Total Cost = 4.179%
Current Yield at TC = 2.5871%
C. Bought 2 SVB Financial 3.5% SU Maturing on 1/29/25 at a Total Cost of 98.466:
%201:29:25%20.png){kind=small}
Issuer: SVB Financial Group (SIVB)
SIVB Analyst Estimates | MarketWatch
SIVB SEC Filed Earnings Press Release for the Q/E 6/30/22
Finra Page: Bond Detail (prospectus not linked)
Credit Ratings: A3/BBB
YTM at Total Cost = 4.142%
Current Yield at TC = 3.5545%
Last Bond Issuances (April 2022):
D. Bought 2 Willis Tower Watson 3.6% SU Maturing on 5/15/24 at a Total Cost of 98.815:
%203.6%25%205:15:24.png){kind=small}
Issuer: Willis Towers Watson PLC (WTW)
"Payment of the principal of and interest on the Notes is fully and unconditionally guaranteed by Willis Towers Watson Public Limited Company, Willis Towers Watson Sub Holdings Unlimited Company, Willis Netherlands Holdings B.V., Willis Investment UK Holdings Limited, TA I Limited, WTW Bermuda Holdings Ltd., Trinity Acquisition plc, and Willis Group Limited."
WTW SEC Filed Earnings Press Release for the Q/E 3/31/22
SEC Filed Press Release for the Q/E 6/30/22
WTW Analyst Estimates | MarketWatch
WTW 2021 Annual Report (This bond is listed at page 105 and is discussed at page 107)
Finra Page: Bond Detail (prospectus not linked)
Credit Ratings: Baa3/BBB
YTM at Total Cost = 4.276%
Current Yield at TC = 3.6432%
E. Bought 2 Marathon Petroleum 3.625% SU Maturing on 9/15/24 at a Total Cost of 99.427:
%209:15:24%20.png)
Purchased 7/26/22.
Issuer: Marathon Petroleum Corp. (MPC)
2021 Annual Report (debt as of 12/31/21 discussed at pages 104-109)
SEC Filed Earnings Press Release for the Q/E 6/30/22
Finra Page: Bond Detail (prospectus linked)
Credit Ratings: Baa2/BBB
YTM at Total Cost = 3.906%
Current Yield at TC = 3.6459%
F. Bought 2 JP Morgan 3.15% CD Maturing on 9/22/23:
.png)
For stocks, my focus remains on dividend yield which leads me to REITs. If those stocks go down in price after my initial purchase, I will consider buying more until I reach my maximum exposure limit.
Office REITs are in major downtrends and I am adding to several positions in small 5 or 10 share lots. There are several concerns that are generating some trepidation and fear among the Stock Jocks: (1) the rise in interest rates negatively impacting refinancing costs and (2) increased vacancies resulting from the WFH trend and a recession or worse. I am less concerned now about the WFH trend. I heard one company executive say that he will pretend to pay people who pretend to work at home. WFH is still a problem for Office REITs in that it will create more vacant space when leases expire and put pressure on rents, either directly in the monthly payments or indirectly through concessions that cost upfront money.
My goal for the Office REITs is the same as for BDCs. I hope that I can trade the stock for profits and harvest the dividends. At current prices, most Office REIT stocks have dividend yields between 7% to 12%.
A. Bought 10 PINE at $18.47; 5 at $18.27:
Quote: Alpine Income Property Trust Inc. (PINE)
PINE is a net lease REIT whose properties "are primarily subject to long-term, triple-net leases, which generally require the tenant to pay all of the property operating expenses such as real estate taxes, insurance, assessments and other governmental fees, utilities, repairs and maintenance and certain capital expenditures."
For triple net lease REITs, the FFO and AFFO cash flow numbers will be close to one another since there would be no adjustment to FFO for routine maintenance expenses. Adjustments up and down tend to cancel each other out (e.g. deduct straight line accounting revenues; add non-cash compensation expense)
This is a new name for me.
Management: External by "Alpine Income Property Manager, LLC, a Delaware limited liability company and a wholly owned subsidiary of CTO Realty Growth, Inc. . . . CTO Realty Growth, Inc. (NYSE: CTO) is a Maryland corporation that is a publicly traded diversified real estate investment trust (“REIT”) and the sole member of our Manager (“CTO”)."
I discuss starting a small ball position in CTO in Item # 3.E. below. CTO currently owns about 15.8% of PINE's outstanding shares.
PINE IPO: Offered at $19 per share in November 2019. Prospectus CTO bought shares at the public offering price. As noted in the prospectus, PINE's initial properties were bought from CTO using in part the proceeds received in the IPO and a private placement with CTO at the public offering price.
Dividend: Quarterly at $.27 per share ($1.08 annually), last raised from
Yield at $18.4 Average Cost Per Share = 5.87%
Next Ex Dividend: 9/9/2022
Last Earnings Report (Q/E 6/30/22): SEC Filed Press Release
 |
| Q/E 6/30/22 and 2022 YTD Results |
AFFO per share = $.47, up from $.39 in the 2021 second quarter
Net Income to AFFO:
The end result is that both AFFO and FFO per are $.47.
Occupancy: 100%
Properties: 143 with 3.3M square feet
Acquisitions and Disposition:
2022 Outlook:
AFFO per share $1.58-$1.63 (midpoint at $1.605 creating at $18.40 per share a P/AFFO of 11.46.
Debt: Mostly variable rate; Spreads to short term rates; Used Interest rate swaps:
Purchase Restriction: Each subsequent purchase must reduce my average cost per share.
B. Added 5 PDM at $12.46- Schwab Taxable:
Quote: Piedmont Office Realty Trust Inc. Cl A (PDM)
Piedmont Office Realty Trust, Inc- Investor Relations
Debt as of 6/30/22:
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| 10-Q at page 14/No Secured Debt |
Investment Categories: Equity REIT Common and Preferred Stock Basket Strategy/Bond Substitute
Last Buy Discussions: Item # 2.C. Added to PDM - Bought 10 at $13.13; 5 at $12.62 (7/13/22 Post); Item # 2.A. Restarted PDM in Schwab Account - Bought 10 at $14.92 (5/26/22 Post)(discussed the 2022 first quarter report, SEC Filed Press Release)
Average cost per share this account: $13.53 (30 shares)
Dividend: Quarterly at $.21 per share.
I have changed my dividend option to reinvestment.
Yield at AC per share = 6.21%
Last Ex Dividend: 8/25/22 (owned all as of)
Last Report (Q/E 6/30/22): SEC Filing
Core FFO per share = $.50, up from $.48
87% Leased
Debt to Gross Asset Ratio = 34.6%
Guidance for 2022: FFO per share of $1.99-$2.05
As previously discussed many times, I do not view FFO as a good cash flow number for Office REITs since it includes pretend revenues created by the straight line accounting convention and does not exclude certain cash expenses including routine maintenance and tenant improvements.
Piedmont does make those adjustments in an AFFO calculation:
Last Sell Discussions: Item # 1.A. Eliminated PDM in Schwab Account - Sold 5 at $18.71 and 34+ at $18 (12/31/21 Post)(profit snapshot = $235.88); Item # 2.H. Eliminated PDM- Sold 10 at $17.95 in Fidelity Account and 10 at $18.02 in Vanguard Taxable Account (1/7/22 Post)(profit snapshots = $128.95)
C. Added 10 BDN at $8.29- Schwab Taxable Account:
Last Discussed: Item # 3.F. Added to BDN - Bought 5 at $8.93; 10 at $8.75; 15 at $8.58; 10 at $8.37 - Schwab Taxable Account (8/10/22 Post) I discussed the last earnings report in that recent post. SEC Filed Earnings Press Release for the Q/E 6/30/22
Average cost per share this account: $8.96 (70 shares)
I am averaging down in this account until I hit 100 shares.
Dividend: Quarterly at $.19 per share ($.76 annually)
Brandywine Realty Trust (BDN) Dividend History | Seeking Alpha
Brandywine Realty Trust Announces Tax Characteristics of Its 2021 Distributions
Yield at AC of $8.96 = 8.48%
Last Ex Dividend Date: 7/5/22 (owned 15 shares this account as of)
I have changed my dividend option to reinvestment.
Last Elimination: Item # 2.F. Eliminated BDN - Sold 15+ at $13.51 in Schwab Account and 20 at $13.5 in Fidelity Account (1/7/22 Post)
BDN Trading Profits to Date: $440.52.
While BDN is an internally managed REIT, the yield and price chart indicates that it is firmly entrenched as disfavored by investors who count.
5 year chart:
D. Added 5 OPI at $18.6; 5 at $18.24:
Quote: Office Properties Income Trust (OPI)
"As of June 30, 2022, approximately 63% of OPI's revenues were from investment grade rated tenants. OPI owned and leased more than 170 properties as of June 30, 2022, with approximately 22.5 million square feet located in 32 states and Washington, D.C."
10-Q for the Q/E 6/30/22 (debt discussed starting at page 34)
Investment Categories: Equity REIT Common and Preferred Stock Basket Strategy/Bond Substitute
OPI is a deservedly hated Office REIT stock, primarily due to the extremely unfavorable opinion about the external manager which is justified IMO. The disfavored status is confirmed by the dividend yield and long term chart.
5 year chart as of 8/29/22: It is not possible to look at this chart IMO and conclude OPI is being managed for the benefit of its shareholders.
The annual average total return (dividends reinvested) starting on 8/29/17 through 8/29/22 was -16.77%. DRIP Returns Calculator | Dividend Channel During that period and with dividends reinvested, the external manager has turned an original $10K investment into $3,991.91.
Last Discussed: Item # 2.F. Bought 5 OPI at $20.49; 5 at $19.88 (7/13/22 Post)
Average cost per share = $19.30 (20 shares)
Dividend: Quarterly at $.55 per share ($2.20 annually)
I am not reinvesting the dividend.
Yield at $19.66 = 11.4%
Last Ex Dividend: 7/22/22 (owned 10 as of)
Last Report (Q/E 6/30/22): SEC Filed Report
OPI provides both a FFO and CAD number.
FFO = $58.622M or $1.21 per share
CAD = $37.823M or $.78
Percent Leased: 89.4%
Last Sell Discussion: Item # 2.G. Eliminated OPI-Sold 10 at $24.47 (1/7/22 Post)
Maximum Position: 50 shares
Purchase Restriction: 5 share lots only with each subsequent purchase having to be at the lowest price in the chain. Consider to sell highest lots whenever it can be done profitably.
E. Bought 5 CTO at $21.54:
Quote: CTO Realty Growth Inc. (CTO)
Website: Home - CTO Realty Growth, Inc.
This is a new name for me.
Businesses: Owns commercial properties, receives fees as the external manager for PINE (discussed above) and dividends as a PINE stock owner, invests in commercial property loans, and has a portfolio of subsurface mineral rights that are periodically sold.
 |
| 10-Q at page 10 |
10-Q for the Q/E 6/30/22
Commercial Loans Summary Information:
 |
| 10-Q at page 17 |
Debt information can be found starting at page 28.
Owns 15.8% of the publicly traded REIT Alpine Real Estate (PINE) and provides management services to PINE.
Management: External
3 for 1 stock split effective on 7/1/22. The per share data in the second quarter earnings report is not adjusted for that split.
Dividend: Quarterly at $.38 per share (after 3 for 1 split/was at $1.12)
Yield at $21.54: 7.06%
Next Ex Dividend: 9/9/22
Last Earnings Report (Q/E 6/30/22): SEC Filed Press Release (share information unadjusted for 3 for 1 stock split)
AFFO per share: $1.48, up from $1.07.
Net Income to AFFO:
Lease Occupancy: 93.5%
Occupied Occupancy: 90.2%
2022 Outlook:
2022 AFFO per share $1.7 to $1.76 (adjusted for 3 for 1 stock split)
On 7/8/22, CTO "acquired Madison Yards, a newly built, grocery-anchored retail property located in Atlanta, Georgia for a purchase price of $80.2 million. The purchase price represents a going-in cap rate below the range of the Company’s prior guidance for initial cash yields."
F. Bought 5 ARGO at $20.5:
Quote: Argo Group International Holdings Ltd. (ARGO)
ARGO Analyst Estimates | MarketWatch The consensus analyst estimates for 2023 and 2024 predict a strong rebound in E.P.S. from the poor 2020 and 2021 actual numbers. I would note that GAAP and Non-GAAP estimates for casualty insurance and reinsurance companies like ARGO can be way off based on underwriting results and performance of the investment portfolio.
Other ARGO Investments: I currently own a $25 par value exchange traded SU bond and a $25 equity preferred stock. Argo Group International Holdings Ltd. 6.5% Senior Notes Due 2042 (ARGD); Argo Group International Holdings Ltd. 7% Preferred Stock (ARGOPRA)
I have been trading ARGD for several years. Last Discussed: Item #3.I. Added 5 ARGD at $22.59 (7/27/22 Post)(realized gain total. = $599.94)
I would attribute most of the ARGD and ARGOPRA recent price decline to a rise in interest rates and the increased volatility in the stock market that will negatively impact exchange traded debt and preferred stock prices.
Another issue is increased concern or worry about credit risk given ARGO's recent GAAP operating results. The SU debt has been rated at BBB- since I first bought ARGD many years ago.
This is my first purchase of the common stock.
1 Year Chart: Bear Market Trend, starting in February 2022.
 |
| As of 8/25/22 |
Investment Categories: Bond Substitute/ Contrarian Value, if analysts future E.P.S. estimates are in the ballpark (possible value trap depending on whether losses continue)
Dividend: Quarterly at $.31 per share ($1.24 annually), last raised from $.27 effective for the 2019 first quarter payment.
ARGO Dividend History | Nasdaq
Yield at $20.5 = 6.05%
Ex Dividend: Today, 8/30/22
Last Earnings Report (Q/E 6/30/22): SEC Filing
Net loss of $18.9M or $.54 per share, down from +$67.2M profit or $1.92 per share in the 2021 second quarter.
Operating Earnings: +$31M or $.86 per share
Issues in the quarter:
Consolidated Highlights:
The rise in interest rates will generate more investment income as maturities roll over.
Investment Portfolio as of 6/30/22:
G. Added 2 SLG at $45:
Quote: SL Green Realty Corp.
Last Buy Discussion: Item # 5.B. Bought 1 SLG at $47; 1 at $45.6 (7/6/22 Post)
Investment Categories: Equity REIT Common and Preferred Stock Basket Strategy/Bond Substitute
I am adding to SLG in 1 or 2 share lots. Each subsequent purchase must be at the lowest price in the chain.
Current Average cost per share = $57.37 (19+ shares)
Dividend: Monthly at $.3108 per share ($3.73 annually, rounded down)
Dividend History | SL Green Realty Corp.
I am reinvesting the dividend since each monthly purchase is reducing my AC per share and I view the stock as undervalued for the long term.
Yield at $57.37 AC of per share: 6.5%
Yield at $45: 8.29%
Ex Dividend: Today, 8/30/22
Last Report (Q/E 6/30/22): SEC Filing
Total Revenues: $201.445M
Rental Revenues: 136.494M
FFO Per Share = $1.87, up from $1.60
Office Occupancy: 92% in Manhattan office space.
Last Sell Discussion: Item # 1.H. Sold 5 SLG at $50; 2 at $52.19 and 1 at $61.54 (6/20/20 Post)
H. Eliminated CIBR - Sold 5 at $43.75:
Profit Snapshot: $55.93
Last Discussed: Item # 1.J. Eliminated CIBR in Vanguard Account - Sold 5 at $50.95 ( Post)(profit snapshot = $92.87)
Last Buy Discussion: Item # 1.F. Bought 5 CIBR in Vanguard Taxable at $32.29 (7/25/20 Post)
My current mood directs me to reduce or eliminate non-dividend paying stocks and low yielding stock ETFs that own high multiple stocks when I can do so profitably.
Except for Cisco, the P/E ratios for the top 10 stocks owned by CIBR are sky high or negative. CIBR – Portfolio – First Trust NASDAQ Cybersecurity ETF | Morningstar (currently rated 3 stars)
The dividend yield is negligible since most of the stocks do not pay dividends.
4. U.S. Treasuries -Secondary Market Purchases:
My approach to buying short term treasury notes in the secondary market is to buy in 1 bond lots and to buy more as the bonds fall in price.
I will use treasuries as fillers in my bond ladder. The tendency will be to buy more as yields rise and/or when I do not own any or many corporate bonds maturing on the same date.
I buy the treasuries in my Schwab, Vanguard and Fidelity accounts where I do not pay a commission, either for purchases in the secondary market or at auction.
The liquidity is so high that there is an insignificant difference in yields for 1 bond lot purchases compared to 100 or 250.
I intend to hold all non-inflation protected treasuries to maturity.
I may trade TIPs bought in Roth IRA accounts, particularly if the prices rise sufficiently to send the real yields into negative territory.
I want rates to go up even though the value of bonds bought earlier will go down.
Given the relatively short maturities of these treasury purchases, I will not have to wait long before receiving the $1K par value per bond, which mitigates interest rate risk.
By using a ladder approach, I will have a constant flow of redemption proceeds that can be invested at higher yields, assuming interest rates trend up.
Most of the treasuries mentioned below were bought in June. Rates have trended up since those purchases.
A. Bought 1 Treasury 2.125% Coupon Maturing on 3/31/24 at 98.218:
%202.125%25%203:31:24%20.png)
YTM at Total Cost: 3.165%
Current Yield at TC = 2.16%, rounded down.
I now own 2. The first one was bought at 99.39 on 4/1/22.
B. Bought 1 Treasury 2.5% Coupon Maturing on 1/31/25 at 98.531:
%202.5%25%201:31:25.png)
I now own 4 bonds.
YTM at Total Cost = 3.084512%
Current Yield at TC = 2.5372%
C. Bought 1 Treasury 2.25% Coupon Maturing on 1/31/24 at 99.0937:
%202.25%25%201:31:24.png){kind=small}
I now own 2 bonds.
YTM at Total Cost: 2.821%
Current Yield at TC : 2.27%
D. Bought 1 Treasury 2.25% Coupon Maturing on 1/31/24 at 98.628:
%202.25%25%20.png){kind=small}
Purchased on 7/18/22. Discussed out of time order.
This is the same bond discussed above which was purchased on 6/10/22. The higher YTM for the 7/18 purchase is due to a change in investor expectations relating to the FED's FF rate increases.
YTM at Total Cost: 3.171%
Current Yield at TC = 2.2813%
I now own 3 bonds.
E. Bought 1 Treasury 2.375% Coupon Maturing on 8/15/24 at 98.57:
%202.375%25%2008:15:24%20.png){kind=small}
I now own 2 bonds.
YTM at Total Cost = 3.058912%
Current Yield at TC = 2.4094%
F. Bought 1 Treasury 2% Coupon Maturing on 5/31/24 at 98.2578:
%202%25%205:31:24%20%20.png)
I now own 3 bonds.
YTM at Total Cost: 2.918713%
Current Yield at TC = 2.0354%
G. Bought 1 Treasury 2.25% Coupon Maturing on 3/31/24 at 98.6538:
%202.25%25.png){kind=small}
I now own 3 bonds.
YTM at Total Cost = 3.024%
Current Yield at TC = 2.28%
H. Bought 1 Treasury 2.635% Coupon Maturing on 4/15/25 at 97.9821:
%202.625%25%204:15:25%20.png){kind=small}
I now own 2 bonds.
YTM at Total Cost = 3.376%
Current Yield at TC = 2.69%, rounded up.
I. Bought 1 Treasury 2.5% Coupon Maturing on 5/15/24 at 98.773:
%202.5%25%205:15:24.png)
I now own 4 bonds including 2 in a RI account.
YTM at Total Cost: 3.1635%
Current Yield at TC = 2.531%
J. Bought 1 Treasury 2.125% Coupon Maturing on 11/30/23 at 98.781:
%202.125%25%2011:30:23.png)
I now own 2 bonds.
YTM at Total Cost: 2.983%
Current Yield at TC = 2.151%
K. Bought 1 Treasury 1.375% Coupon Maturing on 6/30/23 at a Total Cost of 98.261:
%201.375%25%206:30:23.png)
YTM at Total Cost = 3.084%
Current Yield at TC = 1.4%
I now own 3 bonds.
L. Bought 1 Treasury 2.625% Coupon Maturing on 6/30/23 at 99.535:
%202.625%25%206:30:23.png)
YTM at Total Cost = 3.081%
Current Yield at TC = 2.64%, rounded up
I now own 2 bonds with 1 held in a RI account.
M. Bought 1 Treasury 2.75% Coupon Maturing on 7/31/23 at 99.6015:
%202.75%25%207:31:23%20.png){kind=small}
I now own 2 bonds with 1 held in a Roth IRA account that was bought on the same day.
YTM at TC = 3.111%
Current yield at TC = 2.761%
4. Treasury Bills - Recent Auction Purchases:
A "Treasury Bill" is auctioned at a discount to par value. The difference between the auction price and par value represents interest rather than a capital gain.
Treasury Bills are auctioned weekly, except for the 1 year bill that is auctioned monthly. The next 1 year bill will be auctioned on 9/6 and I will participate.
Individual - Treasury Bills: Treasury Direct; What Are Treasury Bills (T-Bills) and How Do They Work?
The weekly auctions are for 1 month, 2 months, 3 months and 6 months.
I currently plan to reinvest more than 50% of the proceeds from maturing treasuries, bought in the secondary market, in similar maturity terms sold at auction. In other words, far less emphasis on secondary market purchases going forward.
A. Bought $20,000 56 Day Treasury Bills Maturing on 10/25/22 at 99.594:
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Investment Rate (coupon equivalent): 2.657%
Funds sourced from Schwab sweep account paying .25%.
Interest = $81.20
B. Bought $10,000 91 Day Bills at 99.272-8/29/22 Auction:
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Funds sourced from Schwab sweep account.
C. Bought 2 182 Treasury Bills Maturing on 3/2/23 at 98.3645-8/29/22 Auction:
%203:2:23.png){kind=small}
Investment Rate = 3.334%
D. Bought 2 Treasury Bills at 7/18 Auction Maturing on 10/20/22 at 99.3756:
%2010:20:22%20IR%202.52%25%20.png){kind=small}
Purchase sourced from Schwab sweep account paying .15%.
Investment Rate (coupon equivalent yield) = 2.52%
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 sale 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 my family members.
