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Subject:  Re: I'm getting killed in the bond market Date:  3/28/2020  3:33 PM
Author:  MissouriGup Number:  36761 of 37043

Normally, I'm carrying 200-300 positions, selected from treasuries, agencies, munis, corporates, and foreign sovereigns, sized as follows: for the low-tier stuff, a max of 2 bonds per issuer. For the mid-tiers, 2-5 bonds/issuer. For top-tier, 5-10 bonds max per issuer. In short, I'm running my own "spectrum bond fund". On some positions, I've made as much as 100% per year for my holding-period. On others, I've suffered a 100% loss...

Man, that seems like a lot of positions. I stick with corporates. Pretty much investment grade and purchases of 10. With a par value of $560,000, the mark-to-market prices shown before the pullback was just over $600,000. Today it is $558,700 and that is after about a $10,000 recovery from the lows. I too have had plenty of bonds get called, but none that have come close to default (so far).

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