That's the biggest reason I am hesitant on corporate bonds in genl...I've owned centurylink 7.60 a few times between 92 and 104...it's about 98 currently but I am hesitant...I read the other day some analyst said high yield could show a negative total return in 2015....meaning you get the coupon but the value of your bond goes down by more than your coupon...I keep coming back to that...Right now I own no bonds...I own a jpm bond that yields 6.4% and wfc-L that yields 6.1%....I feel pretty safe with those two
No...I need alittle more clarity in the oil markets...side note...the high yield bond market in genl is in alittle bit of a funk right now....
gamma...I owned 4k shares and sold 1k this morning...while positive on bac I wonder if the bulls are displaying alittle irrational exurberance and this recovery might be alittle slower than most think.....I was hoping for no news between now and eps release but that didn't happen with the release of less than stellar trading revenues in the 4th qtr....that comment from Moynihan made me step back from overweight to avg weight with my portfolio....I still believe in them but with pause.....good luck
on fidelitys site for the 8.625bond they have a closing price of 88.375 and a ask of 89.5 for available bonds for sale..thats there final numbers for 12/5/14
The thing about line bonds to watch is what is happening with line....if theres no dist cut they will gradually move back towards 100...if theres a dist cut and oil goes lower the bonds will probably drop into the 70's...it's all a #$%$ shoot...best of luck...I looked at the 8.625% one..it's tempting but theres plenty of risk also..
I just looked at fidelity's closing values for Friday...they had your bond closing price @ 84.5 and ask @86.423...what that means is you have to pay $864.23 for a $1000 bond but on your day end portfolio it will be priced at $845.00 meaning a paper loss of 2%...I never liked that but that's the way it works...sometimes you can buy them and the price is better than what you paid...just something to consider. in the end they pay you par value of $1000 assuming they are still in business...
that $85.75 is really 85.75% meaning a $1000 bond can be purchased for $857.50 on the secondary market...it's priced like this because of lack of confidence in the undelying issue Line...ok?
I would guess each brokerage has there inventory?....those were ask prices when I checked...if you want an update just ask
I just pulled some numbers off fidelitys site
8.625 due 4/15/20 88.936 ask
7.75 due 2/1/21 86.5 ask
6.50 due 9/15/21 80.305 ask
7.875 due 4/15/22 84.436 ask
7.875 due 4/1/20 88.999 ask
lots of kinder morgan in the 5%+ area