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My trading record (2022-09-26, buy US reit Simon Property, sell US bond Lumen)

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Share the reasons of buying US Reit Simon Property (SPG) and selling US bond LUMN 7.995 06/01/36 of Lumen Technologies and share my views.

Abstract: Share the reasons of buying US Reit Simon Property (SPG) and selling US bond LUMN 7.995 06/01/36 of Lumen Technologies and share my views.

Transaction detail

Today I am sharing with you about the transaction that I made on September 26. The details are as follows:

Bought reit

Simon Property Group Inc (SPG) 52-week stock chart
Simon Property Group Inc (SPG) 52-week stock chart
Images source: https://seekingalpha.com/symbol/SPG/chart

Sold bond

  • Company: Lumen Technologies
  • Bond: LUMN 7.995 06/01/36
  • Face coupon rate: 7.995%
  • Maturity date: June 1, 2036
  • Sold face value: US$7000
  • Sold bond price: US$54.5
  • Commission fee: US$12.82

Reasons of buying Simon Property

After adding more Simon Property about a week ago, I saw that SPG fell further. I saw that this decline was not unique to SPG, it is a general situation for reits now, so I decided to add a small portion again. I believe that it is extremely pessimistic for reit now. I believe his kind of situation is a good time to buy high-quality assets. If you have spare money to buy and hold, I think it is better to buy in stages and wait for the market’s attitude towards reits to return to normal in the future.

Reasons of selling Lumen Technologies corporate bond

As the price of this bond has fallen sharply recently, it has fallen to a minimum of below US$50. After checking, it is found that the rating has been downgraded to CAA2 recently, which is an extremely low rating. Checked some information on the Internet, it seems that this debt was sold to Apollo Funds, and was dragged down by the latter’s low credit rating. But in any case, if a bond falls to $50 and the rating goes to CAA, as a bondholder, you can only accept your fate, and you must be mentally prepared that the bond will default at any time. So, as I said, to reduce the risk of investing in bonds, the best way is to diversify your investment in as many bonds as possible, not only in quantity, but also in the industry class. Therefore, I had to reluctantly reduce my holdings to reduce potential losses. Of course, I have also seen some bonds rebound after falling to $50. It is possible, but investing is not a gamble. Risks must be controlled, and you must not take chances.

Comments and sharing

If you have any questions, please feel free to leave a message or comment below, I will reply you. Or if you find anything incorrect in the article, please let me know and learn from you. If you find it interesting or it may help you in any sense, please share with other people.

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