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|Subject: Re: Howard: Comparing Portfolios, Again||Date: 3/2/2012 6:27 AM|
|Author: howardgt||Number: 33779 of 35367|
I couldn’t make too much out of your list because you omitted Yrs-to-Mat. Yields are sort of meaningless to me without some sort of duration. I guess I could’ve figured it out using the difference between CY and YTM against Price, but I didn’t feel in the puzzle mood just now :). Anyway, here is my list as of Mar 1 (bought another today).
8 new positions ($18k face), bought at an average cost of 81.54, with average Yrs-to-Mat of 9.6 yrs, rating of B1/BB, CY of 10.1%, and YTM of 13.02%.
I seem to be finding reasonable value (for this interest rate environment anyway). The only thing is that I sometimes have to go out a bit longer in duration than I would like. But when I collect a CY of 10%, I’m prepared to do it. As I’ve said before, if I end up with a YTM anywhere close to 10%, then I’m happy. That leaves me 3%/year for defaults less recovery. In a muddle along economy I think that’s doable.
No time now to answer your other post about charging my bond-risk to all classes in my portfolio. I may explain later, but I purposely “don’t do that”. I got buckets in buckets, all managed separately. There is a reason for my madness, but no time to explain now. Got to get some sleep before I get ready for another (non-financial) project tomorrow.
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