The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Bond Offers a YTM of 522.5%!||Date: 9/28/2012 3:57 PM|
|Author: altstrat91||Number: 34419 of 35367|
i concur with your observations in terms of where the markets are heading. its not a matter of if but when. i can personally relate to what you are saying. my purchasing has dramatically slowed down the last couple months. YTD in my cash based portfolio i added 48 new corps but in my leveraged portfolio i added a little under 300 new corps. for me personally the debt side has been the way to go. i made the switch in mid of 2007 but at that point was mainly trading agencies.
bonds just have a different flow of transparency and process. yes we could talk about and point out the flaws of being a small fish in the proverbial big pond but there are still edges to be had for those willing to do the work day in and day out. in the last 15 years i have tried many different other trading methodologies and vehicles ranging from currencies, options, equities when scalping was still viable pre-decimilization but when all was said and done the results varied and to some extent there is a bit of randomness involved as well.
in a previous thread i asked a question to you in light of the fact that you revealed your YTD buy list in terms of are you actively managing positions or are you sticking with a process in the sense that you are buying across a broad range spectrum in order to achieve a specific annualized ROR or possibly something in the middle.
for me personally in my cash based portfolio we are very alike. i take positions because they have to be taken and let it play out. but in my leverage based portfolio that is well over the four digits mark i actively manage positions based on specific set of criterium.
in terms of shorting and taking a more hands on approach vs. a managed fund, one particular vehicle that really interests me are zero coupon strips. there is no interest to pay out. all you have to do is potentially take a borrowed position; looking into any applicable carrying costs. but this could be something to scale into over time.
one thing that has recently helped me in terms of reading all of your threads is this. in the past i have been hell bent on maintaining zero or break even on principal capital while maximizing income stream, very similar to howard's approach in terms of he sees his bonds as a provider of an annuity like income stream.
so if i picked a lemon position that tanked below a specific mental stop point, i would cut it loose and conversely sell a different position(s) in the green to void that said loss. but the reality is i was sacrificing income stream to do this and it really works itself out in the wash at the end of the year. any potential lemons which ultimately lead to a realized loss of principal can merely be "taken off" the back end out of your annual income stream thus reflected in the final annualized ROR or Yield for a given year.
if i get my hands on any decent floating rate corp notes i will pass along the cusips.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|