Skip to main content
No. of Recommendations: 1
When prices moved against you in '09 and DDT was trading sub-$5 bucks, did you average down or just sit tight?

'09 was a delight for exchange traded bonds (or similar)!

My favorites were ISM and OSM (CPI-linked student loan company debt). I traded those two extensively from '06 through '17 until just before they matured at par. Sure, in '06 I paid a lot (22.something), and in '07 I still paid a lot (21.something), but '08 and '09 were a bonanza ... on 10/10/08 I picked up a bunch of ISM at 7.50. Throughout that period (more than a decade!), I routinely discussed those bonds here on the boards, and I sometimes traded them when beneficial to avoid too large a position. Finally, I started selling, sold 1/3 of the total position in mid '16 at 24.82-24.85, and then sold the remainder in March '17 at 25.15-25.17.

Oh, and they never failed to make an interest payment in all those years. Every single month I received an interest payment, except that the 11/16/09 interest payment was ZERO due to deflation eating up the entire fixed portion. Remember when we were all worried about deflation? 😂
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.