Apria called their 12.375’s of ’14 at par. On one position, I gained. On one, I lost. Normally, I don’t buy new-issue high-yields, because the risks are skewed in favor of the issuer. But 11/16/11, I put on a position at 92.625 for a projected YTM of 15.6%. This year, the trade had gone in my favor, and cash was piling up. So on 02/15/13, I broke one of my rules and added at 100.900 for a projected YTM of 11.7%, knowing full well I might get called and dinged. Well, the call did happen. On my opening position, my achieved YTM bumped to 18.3% (from a projected 15.6%). On the add, my achieved YTM dropped to 7.9% from a projected 11.7%. Technically, that isn’t “losing money”. But it feels like it. The add was correct in terms of the direction of prices. But it wasn’t done at the correct price, because --these days -- there just aren’t many of them. But what’s done is done, and money’s now in my account, waiting to be redeployed. Charlie
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