Hedge fund manager Bill Ackman's fund Pershing Square recently sold its shares of JC Penney for an approximate 50% loss of nearly $500M. While the overall market has enjoyed significant upward momentum, Pershing Square seemingly picked the wrong … [Read more...]
AMC Networks: “Breaking Bad” Bonds
In December 2012 AMC Networks (AMCX) (which spun off from Cablevision Systems (CVC)) issued $600M in new corporate junk bonds due in 2022. The bonds have a 4.75% coupon and are continuously callable beginnning December 2017. Currently the bonds … [Read more...]
HHMI: Top Yielding Aaa Rated 10-Year Bonds
Howard Hughes Medical Institute issued $1.2B in new 10-year taxable corporate bonds dated July 22, 2013. The new bonds currently yield around 3.45%, the bonds' first coupon payment is 03/01/2014 and last coupon, if HHMI does not call them, is … [Read more...]
How EMC’s New Bonds Stack Up
EMC Corp. recently issued new bonds, announced a share buyback and a dividend. The new EMC bonds due in 2023 yield 3.64%, larger blocks have gone for as low as $96.99 recently, with a 3.74% yield. Note bond prices have risen and fallen dramatically … [Read more...]
Should You Buy Stanford Or Apple Bonds?
I have been following two sets of well rated corporate bonds recently; Apple (AAPL) 2043 3.85% issued last month and Stanford 2042 4% issued last year. Some investors may also be deliberating long-term bonds for many reasons, though the decision is … [Read more...]
Raining Dividends, Income Snowballs
Like many investors when I began building portfolios I focused on stocks. I hoped to build a portfolio that would ultimately rain down dividends. Some small positions at first only paid less than a dollar in dividends, once those dividends … [Read more...]
No Portfolio is Complete Without…
For the past two years I have been reviewing mutual funds to invest in. I have formulated a set of criteria for specific mutual funds, and a set of parameters for how a new mutual fund should fit into an overall portfolio. Additionally I have set … [Read more...]
Virginia Mason Medical Center’s New 30-Year Taxable Bonds
Virginia Mason Medical Center, based in Seattle, has just issued $136M in new 30-yr taxable corporate bonds. Currently a few secondary bond market platforms appear to inaccurately list the bonds as call protected, while the bond's prospectus … [Read more...]
Is Now The Time For High Income Funds?
Recently the stock market has soared, and bond prices have also risen. The Dow Jones is closing in on 15,000 after hitting 12,101 in June 2012, for a 2,700 point gain in 10 months. Many investors expect a pullback as the summer approaches, as popular … [Read more...]
Microsoft & Intel: Does Quality Make Up For Low Yield?
The stock market has soared recently and certain well rated tech company corporate bonds have fallen. Specifically, Microsoft and Intel's bonds have dropped in price; the companies' stocks have also lagged relative to the overall market, though … [Read more...]
Ford’s Newest In Long Line Of Bonds
Ford Motor Company and Ford Motor Credit Company have issued several new bonds in the past 6 months. Ford Motor Credit Company’s newest issue includes 5-year corporate bonds (listed as call protected) dated March 28, 2013 and callable 10-year bonds … [Read more...]
Consider Balanced Funds In A Pullback
Last month I read an intriguing article on Seeking Alpha, "Best Bond Investment Strategy: 'Just Say No!'" by Steven Bavaria. Mr. Bavaria begins with: "I am constantly disappointed to see all the investment columnists and financial magazines that … [Read more...]
Simple Income Strategy For Non Investors
In the summer of 2011 the Dow Jones Industrial Average dropped 2,000 points in one month. I listened to a radio interview, about a broker selling all of his clients' investments; he said he was literally "pushing the panic button." While the Dow … [Read more...]
Steps To Building An Income Stream
It constantly amazes me to read about towns struggling in America, I am equally surprised that the United States has long been in financial distress. An income strategy, implemented within the past 50 years, had the potential to prevent this … [Read more...]