I bought another $400,000 worth of Astrea V Class B (rated BBB) bonds through my private bank. The bonds has a face coupon of 5.75% but are trading in the secondary market at 103.50. The yield to call is around 5% and I finance this purchase through leverage.
The latest cash flow profile from my bonds portfolio is presented below for your reference (not including the interest expenses i have to pay on my home mortgage and loans taken out, which will deduct around $50k).
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The bank was willing to lend me the entire purchase price as i had enough collateral but they did warn me about my concentration risk.
I asked my banker about the financing options available and the financing cost in the various currencies are as follows:
