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Calling Bonds

@MFO Members: Today Hertz called in the chips on my HTZ 7.375% bond maturing 1/15/21. This is the downside of having a callable bond, and a by-product of much lower interest rates.
Regards,
Ted

Comments

  • edited August 2019
    Hi sir @_ted

    Nice!! What was Ytm
    What investment bonds you may buy next? Ford

    We picked up Ford last wk but mature 2040s
  • @JohnN: Sorry John, but I don't call losing sixteen months of interest at 7.375% nice. I'm not complaining, bought the bond on7/19/17 at little less than par, so the capital appreciation plus a excellent yields was a win-win. Now I'll have to put the proceeds to work at a lot less the 7.375%
    Regards,
    Ted
  • Sounds like a win to me other than having to reinvest proceeds elsewhere. All-in-all good outcome though... First world problems.
  • This says they were selling for $106.25. Seems like it should be more - but what do I know?

    https://markets.businessinsider.com/bonds/7_375-the-hertz-bond-2021-us428040cg21
  • Hi guys & dolls, Bonds being called away is one of the reasons Old_Skeet went to bond mutual funds only becasuse I simply got tired of bonds being called away from me. Seemed as though I'd buy another one and it would get call away after a couple of years, or so, of buying it. Many times I could not replace the bond with another at or about the same interest rate as the called bond without having to pay a premium. And, with this, I decided to just simply buy bond mutual funds.
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