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|Subject: Re: sell jc penny bonds now to buy back later?||Date: 11/15/2012 6:40 PM|
|Author: blacktreechaser||Number: 34500 of 35468|
Thanx again for your informative charts on the JC Penny bonds,,,both charts.
But, I'm not quite sure what your trying to say in this last short post.
I agree that the price of a bond is not important by itself. What is important is the CY and YTM of the bond at that price (and if selling at a premium. And of course,
As far as risk, my three JCP bonds are 6% of my direct corporate bond holdings. I've had a few called away or tendered which I have not replaced...United Auto Group, Tesoro, SoloCup, I believe. Soo, I'm still ok with 3 bonds, but 6 to 7% is on the high side. So, sell three now, maybe buy back one, hopefully at a lower price.
I'll sell bonds for a capital gain if the YTM is not longer attractive to me and there is something else to buy, but normally I do not try to trade on hiccups...just not worth it. For this one time, maybe I will. I'll re-visit this bond after 4th quarter numbers get posted, and try to figure out what the chances are of getting paid off in full if the company goes bankrupt.
So, if I've missed your point from that last post, feel free to re-explain to me "like I'm a fifth-grader"...(which I am, or lower, regarding a lot of subjects).
My three sold on Etrade at 94. My original purchaser $20 or $30 over par per bond. With interest, its close to a wash, plus/minus less than $50 either way. I just glanced at the numbers, did not break out my calculater yet.
Oh, for now, the receipts from the sale will be dead money.
Anyone listen to Dave Letterman last night?? Had a great line, after reviewing this lastest sex scandal with two generals, two women married to others, and a FBI agent with his shirt off...."Don't you now just yearn for the simplicity of the Clinton years?".....I loved it.
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