Leave a comment


April 27, 2017

GO TO CORE PORTFOLIO to see current positions.

The days of high yields in the Corporate Bond arena are over, unless you want to take risk in buying the junkier bonds.  And we have purchased a few of those and done well.

If you only comfortable with higher quality bonds, the yield goes down.  This week we bought an investment grade bond but it only pays 3.2%.  That is about as good as it gets in the current environment.  Higher quality means lower yield.

So, the yield sux.  But if you want to buy a higher quality bond with DECENT yield look at this position.  We also pasted some copy from SeekingAlpha.com which briefly describes Duke Realty.  We are basically making a play on the industrial REITs which serve Amazon warehouse demands (ever heard of them?!!!!) as well as many others.

Duke Realty Corporate Bond

Mature April 2023

CUSIP 26441yax5

Prologis, Inc. (NYSE: PLD) is a global logistics giant. Duke Realty (NYSE: DRE) is an industrial REIT with a large US portfolio. Both of these portfolios contain large distribution warehouses. These are the two largest Amazon landlords when it comes to owning large-scale fulfillment facilities.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: