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SELLING LOW YIELD BONDS

January 17, 2018

We have sold two Corporate Bonds that were contained in the Core Portfolio.  They offered very small yields (under 3%) and we are selling in order to make funds available for potential purchase of some new positions that pay above 7%.  There is nothing inherently wrong with the bonds so you can continue to hold if you are happy with the yield.

We have been buying ‘funds’ that hold Corporate Bonds, but we have NOT been buying ‘individual’ corporate bonds due to the very low interest rates.  We are still looking to buy a bond that pays north of 4% but it is difficult to justify buying positions where yields are this low.  It was not that many years ago that the majority of our portfolio consisted of corporate bonds.

Crown Castle

Phillip Morris 

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Here is a positive article on the Ventas Corporate Bond that we hold.

https://seekingalpha.com/article/4137552-ventas-fits-bill

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