Bondsquawk's High Yield Bond Portfolio

by: Bondsquawk, CFA

By Rom Badilla, CFA

In last week's post, we covered why it makes sense to invest in individual bonds versus using a fund. A fund's "one-size fits-all" approach can be convenient but may not be suitable for an individual who is looking for a tailored solution toward reaching their investment goals. By choosing to own individual bonds, you will have greater control that could lead to better performance. Furthermore, you should have a better grasp of your investments and where you stand today in reaching your goals.

Below is Bondsquawk's High Yield Bond Portfolio which consists of 12 bonds, one from each diverse sector. The model is used to illustrate an active High Yield portfolio that has bonds rated from BB+ or lower. The goal of this model portfolio is total return so both income and price changes are considered in determining the allocation.

CUSIP Company Ticker Coupon (%) Maturity Price ($) Yield (%)* S&P Reason
85375CAX9 Standard Pacific Corp SPF 8.375 05/15/18 116.00 4.97 B Analysis
704549AK0 Peabody Energy Corp BTU 6 11/15/18 105.25 4.97 BB+ Coming Soon
48020UAA6 The Jones Group JNY 6.875 03/15/19 103.81 6.13 B+ Analysis
25470XAB1 Dish Network Corp DISH 7.875 09/01/19 118.50 4.64 BB- Coming Soon
12543DAL4 Community Health Systems CYH 8 11/15/19 108.88 5.89 B Coming Soon
80007PAL3 SandRidge Energy SD 8.75 01/15/20 108.56 6.30 B Coming Soon
688225AD3 Oshkosh Corp OSK 8.5 03/01/20 111.13 4.97 BB Coming Soon
880779AX1 Terex Corp TEX 6.5 04/01/20 106.88 5.01 B+ Coming Soon
81180WAF8 Seagate Technology STX 7 11/01/21 104.81 6.08 BB+ Analysis
852061AM2 Sprint Nextel Corp S 11.5 11/15/21 136.25 6.16 B+ /*+ Coming Soon
345370BJ8 Ford Motor Co. F 8.875 01/15/22 126.93 5.13 BB+ Coming Soon
983130AT2 Wynn Resorts WYNN 5.375 03/15/22 106.31 4.32 BBB- Coming Soon
Bondsquawk High Yield Portfolio 7.80 7.4 Years 112.78 5.38

* Yield shown is the Yield to Worst measure which is calculated by using the lower of either the Yield to Maturity or the Yield to Call on every possible call date.


  • CYH 8.0% 11-15-19 is currently callable. The next call date is 11-15-15 at 104.00
  • SD 8.75% 1-15-20 is currently callable. The next call date is 1-15-15 at 104.375
  • OSK 8.5% 3-1-20 is currently callable. The next call date is 3-1-15 at 104.25
  • TEX 6.5% 3-1-20 is currently callable. The next call date is 4-1-16 at 103.25
  • STX 7.0% 11-1-21 is currently callable. The next call date is 5-1-16 at 103.50
  • WYNN 5.375% 3-15-22 is currently callable. The next call date is 3-15-17 at 102.688

Information and market quotes on the bond investments are provided by Trade Monster's Bond Trading Center.

The portfolio can change at any time. Bonds can be removed if price targets are achieved or original thesis is no longer valid.


  • High Yield Ratings (BB+ to C- ratings by Standard & Poor's Ratings Services at time of inclusion)
  • 1 to 30 Years Maturity
  • Taxable Bonds
  • Fixed Rate Coupon
  • U.S. Dollar Denominated Only

About this article:

Problem with this article? Please tell us. Disagree with this article? .