tag:blogger.com,1999:blog-2986124651030959736.post4989447497234811159..comments2024-03-28T09:42:38.695-05:00Comments on Stocks, Bonds & Politics: RMT, PDT, SYY, GSTPRB, SWZ, BWG, ARCC/Roth IRA: Added 50 ERC at $13.97and Sold 100 OSM at $23.76/Bought: 50 BPFHP at $22, 100 Realty Income (O) at $36.96/Pared BDGE Selling Highest Cost 56 Shares at $24.71/Pared Intel: Sold 42 at $23.64 and 45 at $25-Highest Cost Shares/Added 50 FAM at $13.74 TENNINDEPENDENThttp://www.blogger.com/profile/17444227958539559639noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2986124651030959736.post-12214562694192516332013-12-12T12:37:51.875-06:002013-12-12T12:37:51.875-06:00I would add that trading in exchange traded bonds ...I would add that trading in exchange traded bonds and preferred stocks is dominated by individual investors who can frequently make irrational decisions. A more charitable description would be to say that professional investors are making different decisions.<br /><br />To show that difference, I would recommend going to the FINRA site that permits an advanced bond search:<br /><br /><br /><br />http://finra-markets.morningstar.com/BondCenter/Screener.jsp?type=advanced<br /><br />The purpose of this exercise is to compare the pricing in the bond market and the stock market for similarly rated bonds. <br /><br />AGIIL is rated BBB- by S & P and matures in 2042. The current yield is close to 8% and the YTM is higher given the discount. <br /><br />If I looked for bonds rated BBB- by S & P maturing between 2040 and 2044, I would find several and they generally have YTM's between 5% to 5.5%. Those bonds are priced by institutional investors whereas AGIIL is priced primarily by individuals, many of whom are selling after paying near or over par value earlier this year. Buy high-sell lower. You will generally find some bonds traded in the bond market whose price is significantly out of whack with its investment grade, which generally would indicate that investors are assigning a different grade to it. <br /><br />For bonds maturing between 2055 to 2062, rated BBB- by S & P, there are only 4. One is issue by Reinsurance Group and I own one of its exchange traded bonds. <br /><br />6.75%/Maturing 12/15/2065<br />http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C316184&symbol=RGA.GC<br /><br />That one is trading near par value. <br /><br />Another is a 6.8% coupon from American Express, maturing in 2066, trading at around 106:<br /><br />http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C350608&symbol=AXP.LA<br /> TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-10701534378295820782013-12-12T12:19:06.713-06:002013-12-12T12:19:06.713-06:00SCOTT: I am familiar with those TDS bonds. At one ...SCOTT: I am familiar with those TDS bonds. At one time, I owned TDA which had a 7.6% coupon and was partially called in late 2010 and then fully called:<br /><br />Partial Call News Release<br />http://ir.teldta.com/phoenix.zhtml?c=67422&p=irol-newsArticle&ID=1500469&highlight=<br /><br />The proceeds from TDE were used to redeem TDA. The symbol TDA was later given to another TDS bond maturing in 2061 which had a 5.875% coupon. The company has been lowering its coupons and extending its maturity dates at the same time. This has been a routine response among corporations to the Federal Reserve's extended Jihad Against the Saving Class.<br /><br />I have also owned at least one U.S. Cellular bond which has also been called. <br /><br />Generally, I have stayed away from bonds maturing much after 2040 but I am willing to buy some in small quantities particularly in the Roth IRA.<br /><br />All securities that are purchased by investors in part for their yield are declining in value, probably due to concerns about tapering and the potential rise in rates next year. This would include exchange traded bonds, preferred stocks, bond CEFs, REITs, and MLPs. The rate rise that started in early May has certainly made investors jittery about what will happen as QE starts to wind down. TENNINDEPENDENThttps://www.blogger.com/profile/17444227958539559639noreply@blogger.comtag:blogger.com,1999:blog-2986124651030959736.post-27683842643170128682013-12-12T11:37:41.825-06:002013-12-12T11:37:41.825-06:00Other baby bonds getting close to your 8% bogey ar...Other baby bonds getting close to your 8% bogey are TDE and TDJ. Both issued by TDS and IG rated. For whatever reason, both have sold off nearly 10% in the last few days. While rates have been weak and this is long dated paper, I'm not seeing any news items that would warrant such a big move. Perhaps it's a liquidation from an institutional player as volume has been unusually high.Scottnoreply@blogger.com