I had positions in the Carlyle Credit Income Fund 8.75% term preferred (CCIA) since April and had bought shares a number of time since–now 95% of the shares have been sold.
Shares had moved sharply higher in the last week–actually hitting the $27.80 area–were I would have sold, but the move escaped me until today when I finally got out at $26.67–a capital gain of around 4-5% to go along with the juicy dividends I have been collecting.
Nothing wrong with CCIF–just moved too high for a term preferred with mandatory redemption in 2028.
I hope to re-enter shares when they come back to earth—and they most certainly will drop back into the $25’s soon.
I replaced my small CCIA holding with EIIA.
Now I’m looking for a good opportunity to swap from LANDP to LANDO
SOJF pricing table? Don’t miss the investment grade issue!
Henry; The boat has long left the dock on this one. Now trading at $26.42. I bought 4,000 at $25.07 & another 1,500 at $2540. I wouldn’t buy it now as its gotten away from those who wait. Iam not a flipper like many here. I will just hold it forever until the possible call in March of 2030.
Thanks for sharing Tim. I always struggle with situations like this – whether to take gains on a sudden runup or let it ride. Unless I have an immediate alternate buy in mind, I usually leave it alone (don’t sell). Can’t say I have not regretted that approach at times but it is what I do.
Proto123–I struggle as well, but my position was a full one and I am confident locking down a 4-5% capital gain now should work out within a month for a re-entry (I hope).
I have been sitting in a waiting room since 5am, so I am writing while I wait. Apologies if this is disjointed.
For me, one way to avoid the *struggle* of whether to sell is to put in a GTC sell order at a high-ish price for a part of my holdings in an issue. That way, if the issue takes off, I don’t have to struggle. I just collect the money from the sale. if it is really rocketing, I can sell more. My rule of thumb is to set the price to net me at least year’s worth of divis. or so (more for my “sock drawer” issues).
I do this even if I don’t have an alternative use for the proceeds in mind. Often, the proceeds just go into money market so I can buy back in to the same issue at a lower price. If not, I find something else to buy.
I have to keep reminding myself not to fall in love with any investment. “you have to care, but not too much”.
I got a nice gain on CCIA, got a great gain on F-D couple of months ago (about $3 gain, and got back in). Usually get one good one a month, on average (plus, I confess, I flip some issues a lot more).
At Schwab, I can put up a GTC that goes out 6 months(and can include pre-and after-market), so it doesn’t take a lot of effort.