Got One Right ()()

Yeah, this post should probably be put into the bond forum. But that forum is all but dead. So, here goes.

Apr 4, 22, I bought NGL’s 7.5’s of '26 at 87 for a YTM of 11.6%, or a very inadequate return for a spec-grade bond compared to “the good old days”. But the position was small --as is my practice when buying junk bonds – and the company’s fundamentals seemed favorable. So it seemed like a trade worth doing. A couple days ago, I was hit with a full call, which will bump my YTM to a decent 15.2%.

So, here’s my thought. Most people buy stocks for cap gains and bonds for income. But spec-grade bonds can offer a bit of both.