Energy Prospectus

CPE, and LPI each have a high yield bond outstanding. The CPE matures on 7/26, and the LPI on 1/25. I thought I would bring them to your attention again because along with the rest of the sector these bonds' prices have pulled back as well. The CPE closed at $91, providing an effective ytm of about 7%, and the LPI closed at $97.50, providing a ytm of about 10%. Each provides a premium over the $100 face value, if they are called early.
I think the market is giving us a gift. Although these bonds were considered junk when issued, as we know, the companies are now, and should continue to be strong until maturity. Of course, I am long both in an IRA and, given the volatile market, I thought I would re-introduce them to you.

Great idea.

Good ones. Thank you

Hoping to not sound too naive, what is the best way to evaluate and purchase corporate bonds. Just a cursory review of Fidelity it looks to be rather cumbersome and intimidating. Do you need a broker to handle. Are there minimum increments? Are there published bid/ask data in real time.

Any thoughts you can provide to educate oneself in trading in corporate bonds would be appreciated.

I've bought thru Fidelity.

If you want easy , buy an etf and get diversification.

Actually if I’m getting into fixed income securities I would prefer an o& g debt that I follow. Not so much now, but in the past some have been heavily discounted.

I actually use AM as a fixed income security. They are not growing, likely will keep their dividend at $.225 a quarter for the foreseeable future. Excess cash flow used to retire debt. Then buy back stock and in not too distant foreseeable future I expect AR to acquire the public float like FANG did with Rattler. Don’t see much upside in growth but it is income that you can count on. Pair it with covered calls and you can juice the return close to 20% or better.

What is the Cusip Number on the CPE 7/26 bonds? Thank you

To all: Go to finra-markets.morningstar.com/BondCenter/. Just hit Search and then enter the name of the company in order to get info. As to buying, I happen to use TD. It is just as easy as buying stock.

Thank you Schwab is HORRIBLE. Any other oil bonds you like???

None that I have seen. These two bonds seem to be an anomaly. However, if you go to stockmarketmba.com/listofpreferredstocks.php, you will find many preferreds (not generally energy) on the bargain counter. I particularly like the fixed-to-floating (ftf) for BDCs that are selling under par, yielding 8%, or soon will be, and when inflation calms down should see a reversion to par for some capital gains.
I do like and own ET-C that currently yields 8.4%. Don't forget that bdc and reits should be held in an ira, if possible.
For details on any particular preferred go to quantumonline.com.