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This is a little late, but 2 weeks ago exchanged some PRFRX for TRAIX/PRWCX and plan to do that monthly through the end of the year in our taxable account. Maxed out our 2022 IRA contributions back in February, all into TRAIX.
One week ago we did add to a previously held position in (MA) Mastercard and initiated a position in BRK.B. Individual stock holdings are such a low % of our portfolio almost not worth mentioning. Play money.
@MikeM: hard for me to tell if today’s weakness in the healthcare (pharma and biotech) stocks I follow was a reversal of some positive signs in the last month or so, or whether everything went out with the bath water today. I have hoped for a recovery in the healthcare sector for months. Discouraging.
Bought small chunks of ICLN and DBA, and watching the positive (but very short term) moves in several debt categories, plus the foreign equity semi-surge, apparently helped along by the dollar dump from its high.
Sold out of FSMEX, which was a 2021 addition. I intend to buy this back at some point later in the year, but this tax-loss sale counterbalances a few capital gains from January.
Few asset classes work this year, except for energy and commodities. Bought COM and DBA (more recently). Market fell considerably since May’s rate hike and there are few more to come. So I am reluctant to commit more to equity until the inflation picture is trending downward.
Thanks, @JohnN. It is likely not important to you but I was referring to the maturity date of the bond. I looked it up and it is February 15, 2038. I own BA stock and so I am past looking at analyst reports / commentary!
@Old_Joe, These are long dated bonds and you are buying at a premium to par. I would make sure that you have call protection. Given these are issued in 1998, I am taking a wild guess that there might be a make whole provision; otherwise, the company would have called during pre-Max crash years when interest rates were low and the company's credit rating was much higher.
@BaluBalu- Yes sir, thanks for your response. You're quite right re the "make whole provision", which I've added to the above post.
Even with the premium, the return should be a bit less than 6%. It seems to me that the main exposure here is the possibility of rates generally holding high for a very long time, potentially causing a loss if it were necessary to sell the bonds back into the secondary market in the future. So- a bet on the Fed and continued inflation? I'm not too concerned about potential bankruptcy... way too big to fail because of defense implications, I'm thinking.
@Old_Joe, Given the tightening cycle we are in, interest rate and spread risks on this bond would be a higher concern than bankruptcy for me too.
I would say the bonds are callable, rather than "Not callable." The make-whole provision could provide protection as long as interest rates decrease and /or spreads improve - the situation I described above- putting the bond price above what you paid for it. But I do not see a protection if the company decides to call when the bond price is lower than what you paid. This can happen in certain circumstances. I see this as a potential risk of loss. The make-whole provision is not a blanket protection which I think is how you interpreted my previous post and so, I deleted the part about protection from my previous post. I am inclined to say these bonds are good for trading than for buying and holding.
NYSE A/D Line correlates well with the market. See this chart from this weekend Barron's (I comment on it only when there is something unusual - e.g. several weeks of up or down moves/runs).
Comments
One week ago we did add to a previously held position in (MA) Mastercard and initiated a position in BRK.B. Individual stock holdings are such a low % of our portfolio almost not worth mentioning. Play money.
Added Boeing bonds 6% ytm BBB+
Cusip 097023AS4
Inflection point in Bot City?
Covercalled qqq early june At 300
Put sale to open Spy 272 expired early june22
10 bucks commission vanguard.com
Think ytm ~5.9%
SO MANY Etf funds has this bond so you think they are legit
Call vanguard or your firm to give you a redflag (any major issues) reports before buy it...also ask for analyst comentary
Out $tna fngu +5%...[good for gas +food monies several wks...sold automatically reached strike price]
According to Schwab:
6.625%
Maturity: 02/15/2038
Not callable / Make Whole provision
Yield To Maturity: Bid: 5.988% Ask: 5.811%
BBB- (not BBB+, although I don't think that's a big deal)
Markup charge: $10 per $10k purchase
I'd appreciate comments or suggestions regarding purchase of these bonds.
Even with the premium, the return should be a bit less than 6%. It seems to me that the main exposure here is the possibility of rates generally holding high for a very long time, potentially causing a loss if it were necessary to sell the bonds back into the secondary market in the future. So- a bet on the Fed and continued inflation? I'm not too concerned about potential bankruptcy... way too big to fail because of defense implications, I'm thinking.
Any other thoughts will be appreciated.
OJ
I would say the bonds are callable, rather than "Not callable." The make-whole provision could provide protection as long as interest rates decrease and /or spreads improve - the situation I described above- putting the bond price above what you paid for it. But I do not see a protection if the company decides to call when the bond price is lower than what you paid. This can happen in certain circumstances. I see this as a potential risk of loss. The make-whole provision is not a blanket protection which I think is how you interpreted my previous post and so, I deleted the part about protection from my previous post. I am inclined to say these bonds are good for trading than for buying and holding.
I hope that helps.
https://finance.yahoo.com/news/bear-market-rule-explains-why-dip-buyers-cant-get-a-break-100038815.html
Have a good day, Derf
More qqqm
Puts sale to open
Soxl 18 due 6.17 Delta 12
Spxl 75 due 6.17 low Delta
Spy 398 6.10 low delta
Lcid 17 - 6.10 delta 13