For the 3 of you who were interested in my junk bonds experience. Bought a bunch of Telesat bonds at $330 per $1,000 tranches a little under 2 years ago. 6.5% coupons expiring October 2027. I got paid all coupons so $65 x 2 (I'll round up to 2 years holding time) for $130 And I sold the bonds for $720. So got $850 in the end on a $330 price paid for each tranche for a ~158% total return. I decided to sell as the risk/reward isn't up to my taste. There is a major litigation going on between bondsholder and Telesat ($TSAT) currently. If Telesat was to get bondsholders 100% of principle, they would have said so and not let that go into court. So I don't expect getting the full $1,000. This is also the latest tranche to expire. Bonds price has stopped to increase in last months, and transaction was sell-only on $IBKR... It's very possible I'm leaving money on the table but am ok with 158% return and it got to be a sizable position in my portfolio. First post: https://link.blossomsocial.com/7uYa/tl0d7zpe N.B. I don't hold any other junk bonds nor did I look into it
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1 Comments
Jean-Guy @jeanguy · 1mo
I remember when you got your Telesat bond, merci d'avoir partager ton experience
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