Bondsquawk’s High Yield Bond Portfolio
By Rom Badilla, CFA
Updated on December 19, 2012 to include analysis on DISH 7.875% 9-1-2019. High Yield Bond Portfolio originally posted on December 10, 2012.
In last week’s post, we covered why it makes sense to invest in individual bonds versus using a fund. A fund’s “one-size fits-all” approach can be convenient but may not be suitable for an individual who is looking for a tailored solution toward reaching their investment goals. By choosing to own individual bonds, you will have greater control that could lead to better performance. Furthermore, you should have a better grasp of your investments and where you stand today in reaching your goals.
Below is Bondsquawk’s High Yield Bond Portfolio which consists of 12 bonds, one from each diverse sector. The model is used to illustrate an active High Yield portfolio that has bonds rated from BB+ or lower. The goal of this model portfolio is total return so both income and price changes are considered in determining the allocation.
|CUSIP||Company||Ticker||Coupon (%)||Maturity||Price ($)||Yield (%)*||S&P||Reason|
|85375CAX9||Standard Pacific Corp||SPF||8.375||05/15/18||116.00||4.97||B||Analysis|
|704549AK0||Peabody Energy Corp||BTU||6||11/15/18||105.25||4.97||BB+||Analysis|
|48020UAA6||The Jones Group||JNY||6.875||03/15/19||103.81||6.13||B+||Analysis|
|25470XAB1||Dish Network Corp||DISH||7.875||09/01/19||118.50||4.64||BB-||Analysis|
|12543DAL4||Community Health Systems||CYH||8||11/15/19||108.88||5.89||B||Coming Soon|
|852061AM2||Sprint Nextel Corp||S||11.5||11/15/21||136.25||6.16||B+ /*+||Coming Soon|
|345370BJ8||Ford Motor Co.||F||8.875||01/15/22||126.93||5.13||BB+||Analysis|
|983130AT2||Wynn Resorts||WYNN||5.375||03/15/22||106.31||4.32||BBB-||Coming Soon|
|Bondsquawk High Yield Portfolio||7.80||7.4 Years||112.78||5.38|
* Yield shown is the Yield to Worst measure which is calculated by using the lower of either the Yield to Maturity or the Yield to Call on every possible call date.
- CYH 8.0% 11-15-19 is currently callable. The next call date is 11-15-15 at 104.00
- SD 8.75% 1-15-20 is currently callable. The next call date is 1-15-15 at 104.375
- OSK 8.5% 3-1-20 is currently callable. The next call date is 3-1-15 at 104.25
- TEX 6.5% 3-1-20 is currently callable. The next call date is 4-1-16 at 103.25
- STX 7.0% 11-1-21 is currently callable. The next call date is 5-1-16 at 103.50
- WYNN 5.375% 3-15-22 is currently callable. The next call date is 3-15-17 at 102.688
Information and market quotes on the bond investments are provided by Trade Monster’s Bond Trading Center.
The portfolio can change at any time. Bonds can be removed if price targets are achieved or original thesis is no longer valid. Analysis on current bonds will be posted along with changes to the portfolio on Bondsquawk.com. Be sure to visit Bondsquawk.com and subscribe with your email (on the side bar of the home page) to receive updates as well as other bond portfolio strategies and insights.
High Yield Ratings (BB+ to C- ratings by Standard & Poor’s Ratings Services at time of inclusion)
1 to 30 Years Maturity
Fixed Rate Coupon
U.S. Dollar Denominated Only
The above content is provided for educational and informational purposes only, does not constitute a recommendation to enter in any securities transactions or to engage in any of the investment strategies presented in such content, and does not represent the opinions of Bondsquawk or its employees.