Vinnie, Some Bonds to Consder

Vinnie,

I moved this post to this forum, instead of where we were having an exchange on that AFGC bond, because it’s a better fit here.

To repeat, my worry about AFGC is that its far-off maturity in 2059 means that taxes and inflation will turn it into a wasting asset by year 18 or so of one’s holding-period. To my way of thinking about bonds, buying that bond to obtain an income-stream is a tactic of desperation, never mind trading elephants for rabbits.

For sure, its Baa2/BBB- rating might offer a bit of protection against issuer-default. But 33 years from now is a long, long time, and who knows what will happen in the meantime with the issuer? Also, it’s not as if there aren’t comparable bonds that come due much sooner.

Below is a list I cribbed from Quantum Online. Maturities are under 5 years. Prices are reasonably current. Those with outlier YTMs should probably be avoided. I used Excel’s YIELD function to calculate YTMs, and this formula to calculate CY’s: CY = (Par* Cpn)/ Price. If the spreadsheet is set up using absolute cell references, then changes to 'Price’ will auto-populate to the CY and YTM columns.

Symbol		Last	Cpn Rate	Due	CY	YTM
ABXL		$26.01	9.88%	11/15/28	9.49%	8.26%
ADAMI		$25.07	9.13%	07/01/29	9.10%	9.03%
ADAMG		$25.08	9.13%	04/01/30	9.10%	9.04%
ADAMH		$25.87	9.88%	10/01/30	9.55%	8.97%
ADAMO		$25.07	9.25%	04/01/31	9.22%	9.18%
MITN		$25.47	9.50%	02/15/29	9.32%	8.80%
MITP		$25.45	9.50%	05/15/29	9.33%	8.87%
AOMN		$25.72	9.50%	07/30/29	9.23%	8.55%
AOMD		$25.38	9.75%	06/01/30	9.60%	9.32%
ATLCL		$24.75	6.13%	11/30/26	6.19%	7.31%
ATLCZ		$25.52	9.25%	01/31/29	9.06%	8.47%
RILYG		$20.21	5.00%	12/31/26	6.19%	28.41%
RILYK		$24.71	5.50%	03/31/26	5.56%	11.03%
RILYN		$21.27	6.50%	09/30/26	7.64%	41.40%
RILYZ		$12.30	5.25%	08/31/28	10.67%	35.90%
RILYT		$13.85	6.00%	01/31/28	10.83%	38.42%
BWNB		$24.56	6.50%	12/31/26	6.62%	8.42%
CCID 		$25.37	7.38%	10/30/28	7.27%	6.79%
CHRB		$22.90	8.50%	08/31/26	9.28%	22.51%
CIMP		$25.10	8.88%	08/15/30	8.84%	8.77%
CIMN		$25.32	9.00%	05/15/29	8.89%	8.55%
CIMO		$25.58	9.25%	08/15/29	9.04%	8.49%
CICB		$25.35	7.50%	12/30/29	7.40%	7.09%
ECCV		$23.90	5.38%	01/31/29	5.63%	6.99%
ECCX		$25.18	6.69%	04/30/28	6.64%	6.35%
ECCU		$25.10	7.75%	06/30/30	7.72%	7.64%
GAINI		$25.64	7.88%	02/01/30	7.68%	7.15%
GAINZ		$23.86	4.88%	11/01/28	5.11%	6.68%
GAINL		$25.22	8.00%	08/01/28	7.93%	7.62%
GECCG		$25.03	7.75%	12/31/30	7.74%	7.72%
GECCI		$25.12	8.50%	04/30/29	8.46%	8.33%
GECCH		$25.15	8.13%	12/31/29	8.08%	7.95%
GECCO		$25.00	5.88%	06/30/26	5.88%	5.88%
GEGGL		$24.73	7.25%	06/30/27	7.33%	8.04%
HTFC		$24.85	6.25%	06/15/27	6.29%	6.69%
MFAN		$25.34	8.88%	02/15/29	8.76%	8.37%
MFAO		$25.53	9.00%	08/15/29	8.81%	8.31%
MFICL		$25.23	8.00%	12/15/28	7.93%	7.64%
NMFCZ		$25.49	8.25%	11/15/28	8.09%	7.48%
NEWTH		$25.23	8.63%	10/15/29	8.55%	8.34%
NEWTI		$25.20	8.00%	09/01/28	7.94%	7.66%
NEWTG		$25.16	8.50%	06/01/29	8.45%	8.28%
OCCIN		$24.62	5.25%	12/31/26	5.33%	6.89%
OCCIM		$25.18	7.88%	10/31/29	7.82%	7.65%
OFSSO		$25.68	7.50%	07/31/28	7.30%	6.34%
OFSSH		$23.69	4.95%	10/31/28	5.22%	7.03%
LTSK		$22.50	7.25%	09/30/28	8.06%	11.60%
LTSL		$23.50	6.50%	11/30/27	6.91%	10.04%
LTSF		$22.50	7.00%	05/31/28	7.78%	11.89%
LTSH		$22.00	7.75%	06/30/29	8.81%	12.04%
OXLCZ		$24.38	5.00%	01/31/27	5.13%	7.48%
OXLCI		$25.62	8.75%	06/30/30	8.54%	8.08%
OXSQH		$25.48	7.75%	07/31/30	7.60%	7.25%
OXSQG		$24.16	5.50%	07/31/28	5.69%	6.95%
PMTU		$25.38	8.50%	09/30/28	8.37%	7.87%
PMTV		$25.71	9.00%	02/15/30	8.75%	8.17%
PMTW		$25.54	9.00%	06/15/30	8.81%	8.41%
PFXNZ		$23.71	5.25%	11/01/28	5.54%	7.30%
PRHIZ		$19.20	9.75%	09/30/28	12.70%	21.21%
METCZ		$25.34	8.38%	11/30/29	8.27%	7.97%
METCI		$25.25	8.25%	07/31/30	8.17%	7.98%
RCD		$20.96	9.00%	12/15/29	10.73%	14.47%
RCB		$24.60	6.20%	07/30/26	6.30%	9.07%
RWTO		$24.99	9.00%	09/01/29	9.00%	9.01%
RWTN		$25.00	9.13%	03/01/29	9.13%	9.13%
RWTP		$24.82	9.13%	03/01/30	9.20%	9.34%
RWTQ		$26.12	9.50%	12/01/30	9.09%	8.37%
RWAYL		$25.24	7.50%	07/28/27	7.43%	6.84%
RWAYZ		$25.24	8.00%	12/31/27	7.92%	7.47%
SCCD		$24.24	6.00%	12/30/26	6.19%	9.34%
SCCE		$23.46	6.00%	03/30/27	6.39%	11.52%
SCCF		$23.40	7.13%	06/30/27	7.62%	11.96%
SCCG		$23.65	8.00%	09/30/27	8.46%	11.51%
SAT		$24.91	6.00%	04/30/27	6.02%	6.29%
SAJ		$25.61	8.00%	10/31/27	7.81%	6.55%
SAY		$25.32	8.13%	12/31/27	8.03%	7.42%
SAZ		$25.39	8.50%	04/15/28	8.37%	7.74%
SPMA		$25.24	8.00%	11/30/29	7.92%	7.71%
SPME		$25.21	7.88%	07/31/30	7.81%	7.65%
SSSSL		$25.00	6.00%	12/30/26	6.00%	6.00%
SWKHL		$25.59	9.00%	01/31/27	8.79%	6.65%
TFSA		$24.88	7.00%	03/31/26	7.03%	9.27%
TPTA		$23.69	6.00%	06/30/26	6.33%	17.28%
TRINZ		$25.20	7.88%	03/30/29	7.82%	7.60%
TRINI		$25.27	7.88%	09/30/29	7.80%	7.54%
TWOD		$25.87	9.38%	08/15/30	9.06%	8.46%
TWOD		$25.87	9.38%	08/15/30	9.06%	8.46%
WHFCL		$25.28	7.88%	09/15/28	7.79%	7.41%

For some reason, the last portion of the list didn’t print in the opening post. So here’s the rest of it.

Symbol		Last	Cpn Rate	Due	CY	YTM
SAT		$24.91	6.00%	04/30/27	6.02%	6.29%
SAJ		$25.61	8.00%	10/31/27	7.81%	6.55%
SAY		$25.32	8.13%	12/31/27	8.03%	7.42%
SAZ		$25.39	8.50%	04/15/28	8.37%	7.74%
SPMA		$25.24	8.00%	11/30/29	7.92%	7.71%
SPME		$25.21	7.88%	07/31/30	7.81%	7.65%
SSSSL		$25.00	6.00%	12/30/26	6.00%	6.00%
SWKHL		$25.59	9.00%	01/31/27	8.79%	6.65%
TFSA		$24.88	7.00%	03/31/26	7.03%	9.27%
TPTA		$23.69	6.00%	06/30/26	6.33%	17.28%
TRINZ		$25.20	7.88%	03/30/29	7.82%	7.60%
TRINI		$25.27	7.88%	09/30/29	7.80%	7.54%
TWOD		$25.87	9.38%	08/15/30	9.06%	8.46%
TWOD		$25.87	9.38%	08/15/30	9.06%	8.46%
WHFCL		$25.28	7.88%	09/15/28	7.79%	7.41%

Suggestion: If you use the list to do some buying, spread your purchases among issuers. Don’t bet the farm on any single one of them, and try to avoid industry over-weights.

Also, be aware the list is far from exhaustive. I didn’t include converts. or those without a fixed coupon rate, or those whose current price was worrisomely low.