Finally, after weeks of ATNA, I finally did something productive. I was so inspired by my recent idea to exchange my ABK super junk bonds for Finlay defunct bonds that I made another similar move today. I exchanged my beloved Neiman Marcus bonds for some more BAC shares.
I've been lamenting my BAC semi-profit-taking for a while. And since I finally had a ForexDiva mini success story with my Neiman Marcus bonds, I decided to rebalance my portfolio again.
This is the way junk bond trading should always be. However, it's never happened to me before and now that it has, I can't wait for it to happen again.
At the onset, I was expecting a profit of four figures from my Neiman Marcus bond trade by 2015. That is a long time to wait for a small profit now that I think about it. However, it made sense from a risk:reward point of view then. At the time I made the trade, this bond was trading at about $0.4352 on the dollar. It has since risen to $0.96 on the dollar. Due to the lack of liquidity in the corporate bond market, though, I got filled at about $0.93 on the dollar. Still quite good, if I must say so myself. This gets me so excited!
Anyway, I had estimated that approximately half of my profits would be attributed to coupon interest and the other half would be from the principal by the time 2015 rolled around.
It has now already reached about half my profit objective. Whilst I could wait around for 2015, I thought adding to BAC at this time could potentially yield greater profits more quickly than waiting for Neiman.
I really hope I made the right choice! In any case, it was a fun trade.
I made four figures on this trade. Am I grinning from ear to ear or what?
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