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In "5 Bonds To Consider Buying On A Pullback," I provided details for five bonds maturing between 2018 and 2023 that are in the lower investment grade and upper non-investment grade part of the corporate bond market. Based on the feedback I receive from articles that offer ideas about corporate bonds with roughly 10 years or fewer to maturity, it appears there is an active interest among a select group of investors for such information. As the seemingly never-ending concern about higher rates being just around the corner continues, I suspect the interest among everyday investors seeking out individual bonds rather than bond funds will continue to grow.

Just as investors often do with stocks, I think it is necessary to build a large watch list of bonds. You might not ever purchase all of them, but by having a watch list with a number of individual bonds on it, you would give yourself more opportunities to eventually purchase bonds at prices you find attractive. You would also avoid the unfortunate situation in which you are only following a couple of bonds, waiting for them to hit your price target, only to see both of them experience a deterioration in their businesses. Perhaps the change in those companies' business prospects alters your view of the credit risk of those companies, thereby leaving you with an empty watch list.

By having a dynamic watch list from which bonds come and go, you will always have a healthy selection of securities from which to choose. With that in mind, I would like to offer five more individual bonds that I think are worth adding to a watch list and considering for purchase at some point in the future.

HCA's (HCA) senior secured note (CUSIP: 404121AF2), maturing 5/1/2023, has a 4.75% coupon and is asking 100.509 cents on the dollar (4.687% yield-to-maturity before commissions). It has a make whole call and pays interest semi-annually. Moody's currently rates the note Ba3; S&P rates it BB. For an interesting take on using this bond within a larger trade, see "A Unique Money-Making Opportunity In HCA".

AngloGold Ashanti Holdings Finance's (AU) senior unsecured note (CUSIP: 03512TAC5), maturing 8/1/2022, has a 5.125% coupon and is asking 99.987 cents on the dollar (5.126% yield-to-maturity before commissions). It has a make whole call and pays interest semi-annually. Moody's currently rates the note Baa2; S&P rates it BBB-. For additional information on AngloGold Ashanti, please read my article, "The Platinum - Bond Trade".

Chesapeake Energy's (CHK) senior unsecured note (CUSIP: 165167CF2), maturing 8/15/2020, has a 6.625% coupon and is asking 103.25 cents on the dollar (6.089% yield-to-maturity before commissions). It has a make whole call and pays interest semi-annually. Moody's currently rates the note Ba3; S&P rates it BB-.

Best Buy's (BBY) senior unsecured note (CUSIP: 086516AK7), maturing 3/15/2016, has a 3.75% coupon and is asking 91.745 cents on the dollar (6.575% yield-to-maturity before commissions). It has a make whole call and pays interest semi-annually. Moody's currently rates the note Baa2; S&P rates it BB.

Safeway's (SWY) senior unsecured note (CUSIP: 786514BS7), maturing 8/15/2020, has a 3.95% coupon and is asking 99.911 cents on the dollar (3.963% yield-to-maturity before commissions). It has a make whole call and pays interest semi-annually. Moody's currently rates the note Baa3; S&P rates it BBB.

Please be aware that prices in the over-the-counter U.S. bond market may vary depending on the broker you use. The current prices may also differ greatly from those listed at the time this article was written. For more information on any of these notes, including additional call or put features, please contact your broker or read the indenture.

Also, please do your own due diligence on the financial profiles of the companies mentioned in this article. Only you can determine if taking the counterparty risk of purchasing individual bonds is suitable for you.

Source: 5 Bonds To Add To Your Watch List