Tag Archives: junk bonds

Heads Up For Junk Bond Investors — One Firm Puts Temporary Halt On Withdrawals!


.Anura Guruge December 2014 thumbnail

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by Anura Guruge


Related posts:
0/ BJBHX — bleeding to death.
1/ BJBHX — just to lose money!
2/ Final goodbye to BJBHX.

3/
BJBHX $0.26 cap gains for 2014.
4/
BJBHX stopped hemorrhaging for a day.
5/
BJBHX depressing news.
6/
BJBHX: sticking it out till 2015.
7/
BJBHX has decent December 2013.
8/ 
Uncontrollable Infatuation With BJBHX.
9/
BJBHX: I Bailed With Regret.

++++ Search ‘BJBHX‘ for other related posts >>>>


junkbondec112015

Click to access ‘MarketWatch.com’ original.


Though I got out, TOTALLY, from Junk Bonds in mid-May of this year, after living off them for nearly 6 years, this sent a CHILL through my spine.

IF I had still been in Junk Bonds, and at this time last year, my life depended on them, this would have been SCARY. A STOP on withdrawals is bad at any time BUT particularly so at year end. Folks have taxes to pay, e.g., Property Taxes in New Hampshire, or have need to do some rebalancing for Capital Gains etc. WOW.

So a heads up. It has, with interest rates ready to rise, been a bad year for junk. I am surprised that there is till anybody in them. I just worry that those that are in are those that are OBLIVIOUS that they are in — and that is the dastardly deed of unscrupulous brokers.

So a BIG Heads Up. Get out, with what little you have left, as fast as you can.


Aberdeen (Artio) Global High Income Fund, BJBHX — Bleeding To Death!


.Anura Guruge December 2014 thumbnail

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by Anura Guruge


Related posts:
1/ BJBHX — just to lose money!
2/ Final goodbye to BJBHX.

3/
BJBHX $0.26 cap gains for 2014.
4/
BJBHX stopped hemorrhaging for a day.
5/
BJBHX depressing news.
6/
BJBHX: sticking it out till 2015.
7/
BJBHX has decent December 2013.
8/ 
Uncontrollable Infatuation With BJBHX.
9/
BJBHX: I Bailed With Regret.

++++ Search ‘BJBHX‘ for other related posts >>>>


BJBHX chart from MarketWatch.

bjbhxmay2015

Click to ENLARGE and stare in awe here. It was May 13, 2015 when I told YOU that I was finally getting the heck out of BJBHX.


Last night on Marketwatch I happened to see an article whose headline was “Deteriorating Junk Bonds …“. I was very glad that I was NO LONGER in junk bonds — having lived off them for nearly 6 years after the 2008 Financial Crisis. Since BJBHX was my prime instrument for exploiting junk bonds I had a hankering to see how it was doing — though I knew that it could NOT be doing too well given that junk bonds have taken a hammering this year.

I was sickened by what I saw — i.e., the CHART above.

WOW. WOW. WOW!

Am I glad that I finally bailed out in mid-May 2015. Best thing I have done in years.

I did tell YOU to do the same. I reiterated that in September. IF you are still in BJBHX I feel bad for you. I have NOT checked the ex-DIV dates BUT if the Capital Gains are still in the fund GET OUT TODAY. Salvage what you can.

My fear is that many of you might be in BJBHX via a broker and not even KNOW that you are bleeding money like there is no tomorrow.


When I extracted everything I had in BJBHX I had to find a place to park it.

I also need to be able to make money from OPTIONS to make up for the income I was losing from BJBHX.

So not knowing any better I put all the BJBHX money into AMZN!

SMILE.

bjbhxamazn


Aberdeen (Artio) Global High Income Fund, BJBHX — ONLY For Those Hell Bent On Losing Money.


.Anura Guruge December 2014 thumbnail

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by Anura Guruge


Related posts:
0/ Final goodbye to BJBHX.
1/
BJBHX $0.26 cap gains for 2014.
2/
BJBHX stopped hemorrhaging for a day.
3/
BJBHX depressing news.
4/
BJBHX: sticking it out till 2015.
5/
BJBHX has decent December 2013.
6/ 
Uncontrollable Infatuation With BJBHX.
7/
BJBHX: I Bailed With Regret.

++++ Search ‘BJBHX‘ for other related posts >>>>


BJBHX chart from MarketWatch.

bjbhxsept1


I feel bad, real bad, for those that are still in BJBHX. With interest rates set to go up and the stock market taking a beating there is only one way that the BJBHX NAV was going to go and that was NOT upwards. BJBHX kept me afloat during the worst of the 2008 – 2012 financial crisis. I do not know what I would have done if not for BJBHX. But that was then, and this is now. I always knew that 2015, with interest rates bound to go up, was going to be painful for BJBHX. That said I hung on to it, albeit with a reduced holding, until May 2015. I then bailed and I am so glad I did. I invested all of my BJBHX holdings in AMZN and have been writing options against the stock. SMILE. Sure beats BJBHX.

I did tell you to bail, with me, in May. The NAV was $9.77 then. It is $9.17 today. A 6% drop in 6 months. That can be painful.

From what I can see the only rationale for staying with BJBHX is IF you have need to lose some serious money. Well, some people do — to offset huge Capital Gains or reduce their nett worth. BJBHX is the perfect instrument, these days, to achieve that. It will help you lose money with style. IF you are not that keen about losing money then BJBHX is NO LONGER for you. Their run, and it was good in the glory days when junk bonds were king, is now over. So I am just trying to help you. OK?

Best of luck. Fingers crossed for Thursday. I actually want the Feds to raise the damn interest rates. Lets move on. Get it out of the way. This slow drip-drip wait is a waste of time. Yes, a volatile market is fun but it is also nice to see the market chugging upwards.


Finally A Final ‘Bye Bye Blackbird’ Adieu To Aberdeen (Artio) Global High Income Fund, BJBHX.

.Anura Guruge December 2014 thumbnail
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by Anura Guruge


Related posts:
1/ BJBHX $0.26 cap gains for 2014.
2/
BJBHX stopped hemorrhaging for a day.
3/
BJBHX depressing news.
4/
BJBHX: sticking it out till 2015.
5/
BJBHX has decent December 2013.
6/ 
Uncontrollable Infatuation With BJBHX.
7/
BJBHX: I Bailed With Regret.

++++ Search ‘BJBHX‘ for other related posts >>>>


bybebyebjbhx

Click to ENLARGE. Underlying chart and data from, of course, MarketWatch.com.


Well it had been on the cards for months. BJBHX was going nowhere, but down. Interest rates are due to rise and according to all junk bonds were due to take another hammering as that happened. The dividends, always BJBHX’s one redeeming trait, were also beginning to dry up. I could NOT take it anymore. I will be the first to admit that BJBHX helped — nay, enabled — me to weather the 2008ish financial crisis. BJBHX did good, very good, in those dark and uncertain times.

But things have changed and with that BJBHX’s value-proposition. I started to wind-down my position about 7 weeks ago. I did not want to pull-out, overnight, cold turkey. Why? I did not want to hurt my fellow shareholders! Yes, I am strange. I have never denied it. I am what you might call an altruistic investor. I do not like to hurt others. Yes, I know. Crazy. But then again I am also not greedy. To also be fair, most of the time I do not have anything to worry about since the most I usually have to invest is around $2 (as you might know from my posts). But in the case of BJBHX I had a few shekels in the pot. If I had withdrawn it all, one night, as I was certainly entitled to do, since I have held these shares for years, it could have hurt the NAV. So I opted to withdraw in batches to limit the outflow. I finally made my last withdrawal as soon as we got back from Arizona. I am GLAD I did.

I am using the proceeds from BJBHX to play options. Yes, the ability to write more options was another reason I wanted out of BJBHX. I think I have a problem. I am addicted to writing options! As far as addictions go this is not too bad or painful. I only do out-of-the-money options using good underlying stock. It is fun. It is white-collar gambling. But with the options I stand a chance to make some money, and that had ceased to be the case with Aberdeen (Artio) Global High Income Fund. So bye, bye blackbird. IF I never own another Artio product, that might prove to be too soon. Coincidentally, or otherwise, that is when the rot set in, when Artio acquired Aberdeen,

I also, a few weeks earlier, be it, also got rid of all my shares in YACKX, Yacktman Fund. I had been a (secret) YACKX holder for a longtime. 7+ years I think. It was the fund I never talked about. I had found it after years of diligent research and I didn’t want it spoiled. It (again prior to an acquisition) used to be a little champ. Delivered on its promise and dolled out some healthy dividends. It too has since lost its way. I didn’t, in reality, have much invested in it and as such it was no big deal closing it out, overnight. I did that about 6 weeks ahead of BJBHX. So that is bye, bye to two mutual funds. I now have just three more, one of them NOIEX, ‘Northern Income Equity Fund’, that no longer generates income! I have sold some NOIEX shares in 2015 and I am pretty sure that NOIEX will cease despoiling my portfolio within the next few weeks. I think my patience has finally started to run out. That will leave me with just two funds, one that I just acquired at the end of 2014. It hasn’t done much but it shows promise. The other I had had for a ‘long’ time. Maybe 4+ years. It delivers on what it says in its prospectus.


yacktatlast

AMG Yacktman Fund, YACKX, data from MarketWatch.com. Click to ENLARGE and look.