Heartland Subordinated Notes

[GTM 3442]

I've avoided bonds for the last many years because the interest rates were so pathetic. As someone who presumably invested in them through those years aren't you well down on what you paid for them?

At it's simplest, I buy at time of issue and hold until maturity. A buck goes in and a buck comes out. And I get paid interest along the way. And yes, I have some unrealized/paper losses along the way - which vanish like mist on a sunny Taranaki pasture come maturity.

As for the pathetic interest rates of recent history, there was money to be made selling LGF120 (1.5%) into the 2020/21 secondary market. And by buying OCA010 at >7% for about 83 cents on the dollar more recently.

Bonds are just as complicated as shares, but in different ways