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Subject:  Got Rid of My Monsanto Bonds Date:  12/3/2019  2:32 PM
Author:  Arindam Number:  36689 of 36787

My conscience finally prompted me to do what I should have done long ago, and I sold my Monsanto bonds. (In fact, I never should never have bought them in the first place, given how evil the company is. But that's a discussion for a different post.)

Anyhow, they got themselves into trouble about a year ago, and their bonds became discounted. So I opened a minimalist position of two in May '18. By Aug, prices on their debt had dropped further, so I added another two of a different maturity. Predictably, I was early, and prices dropped even further. But rather than average down further, I sat tight, not wanting to increase my position in what I knew was a morally questionable investment, never mind its financial risks.

Recent news hasn't been good for the company, and all markets (stocks, bonds, commodities) are skating on the thin ice of Powell's insane pledge to bailout the banks, once again. So, it has become time to sell what should be sold. One position was held at IB. So I hit the bid and was out, with a YTS (Yield to Sell) gain of 15.8% for a 1.3 year holding-period. The other --and first-- position was held at Fido, and I dreaded dealing with their customary email messaging system and soliciting of bids. But to my surprise, I was able to use the book to find a bid that matched my position size and got an immediate fill, for a YTS gain of 6.9% for a 1.6 year holding-period.

What to do with the cash? Who knows? But I'm relieved to be out of Monsanto and on the sidelines. Secondly, Fidelity is becoming a better and better shop to deal with for bonds. Of the discounters (Schwab, ET, TD, etc.), my favorite is still IB. But Fido is beginning to match their ease of execution and should be preferred by smaller accounts if they aren't also trying to do crazy stuff like trade equity index futures intra-day (which will become a necessity when markets finally do crash).

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