Recent Bond Activities

sold 172967AZ4 $103.35 (see old post for bond details)

bought 02635PSK0 $85.50 Americdan General Finance 4% due 03/2011. S&P rating BB+

AAPL

sold some AAPL at 187.05

recent activities

sold:

• 172967CU3 at 103.843. net gain is 5% plus 7.25% interests for all these 6 months.

bought

• 254709AD0 at 90.999; Discover Financial 6.45% maturity 06/2017. BBB
• 013817AS0 at 97.75; Alcoa 6.75% 07/2018 BB+
• 984119AC1 at 90.50; Xerox 8% 02/2027 BB+
• 52107QAC9 at 99.25. Lazard 7.125% 05/2015 BBB
• 172967CQ2 at 91.499; CITI 5% 09/2014 A-

CIT finale

It turned out that CIT did not file for bankruptcy and it redeemed my bond. this is my first redemption. E*trade just put the face value ($1000 per bond) to my account, no commissions. it recorded it as an investment gain. wow, a gain after all this! almost 7% in over 8 months, i.e. over 11% APY. not bad.

Recent Investment activities

1, Sold some AAPL at 164.0;

2. bought American Express Floating Rate bond at 98.95. maturity date 03/2010. Just want to test how this works; the rate is 1 month libor + some (forgot, but probably than 10) BPS.

3. bought bond issued by American General Finance Corp. (Part of AIG) at 98.25, maturity date 10/1/09. only two months to go. i think i can get full principle back and some. again this is a test of this kind. couple rate 3.88%

CIT Bond redemption

http://finance.yahoo.com/news/Private-rescue-of-CIT-marks-apf-2442023652.html?x=0&sec=topStories&pos=2&asset=&ccode=

"...CIT launched the cash-offer for $1 billion worth of senior notes due Aug. 17. It is offering $825 for each $1,000 worth of notes tendered on or before July 31, and $800 for notes tendered between Aug. 1 and Aug. 17. Lenders involved in the bailout deal have agreed to tender all of their Aug. 17 notes, CIT said. The company and the steering committee of bondholders now will work on drawing up a number of debt swap offers designed to alleviate CIT's debt burden and further shore up the company's cash position. Failing to garner enough tender offers for the upcoming debt could force it to file for bankrupcy protection, CIT disclosed in the SEC filing."

i have not received anything yet for my CIT bond holdings. hopefully something coming in the mail. my investment is deemed to loose money since i bought it at 91...

CIT bankruptcy possibilities

Remember that I mistakenly bought CIT bonds (originally intended to buy citi bonds)? while my subsequent citi bonds has a nice paper gains, as you may know, cit is on the edge of filing bankruptcy soon. Will learn a lesson what happens to the bonds when the issuer files bankruptcy...

cit bonds last traded at 35, down from about 85 two days ago, from 96 at beginning of the week. The price I got it at the end of Dec. was 91. Now I have the paper loss that is more than all the paper gains from my other bond holdings. My only hope is that it does not file bankruptcy. In these past days its shares are the most volatile I have seen, signaling the direction of the filing.

Not sure what happens to my bond if it gets bought by another bank, like CFC by BAC; if it files like Lehman bro. I will probably get nothing, if filing like the Auto companies, I will get very little. Will see. the press keeps talking about their billions of bonds due next year, but mine is due in 30 days, and mere a $61million note issued last August.