Monday, May 16, 2016

Noble Energy Bond a winner

Discount bonds are a bit scary as they should be.  I liked this bond at $95.58 in 2015 and liked it even more at $60.61.    Click on link here.  Today this bond (CUSIP 65504LAC) is trading at $82.50.


My first buy looks mighty expensive but my second buy looks really successful.  In total, my loss is 1.65% .  I think the bonds will pay off at par when they come due in a little over 4 years and that would be a very nice return.

This is good income investing.  You have to have courage to add to a position that has tanked over 36%.   Hopefully, it will work out o.k.


Disclosure:  Long this bond