|I'm not sure if I categorized things correctly, I have a 1 month time deposit of 250,000 categorized as cash for this entry. It was offered at a promotional 5% Annualized rate due to a bond subscription I made. You can see that my bond category is higher along with my "other debts".|
Another promotional spread was ending that would allow me to lock in a spread against the 1 month interbank offer rate that meant that I could borrow at about 1.33% vs 2.5%, and invest in investment grade bonds of a ~6 year maturity yielding ~4%.Net effect of the leverage is a yield of ~11% net of interest expense.This means that based on dividends and bond coupon income (They were all roughly at par) passive income of around. 120,000 a year.
I've also broken out stocks and liabilities a bit as in my February post, i simply entered liquidation value for stocks when in fact it's some amount of stocks on margin. So increased the value of the stocks while adding the margin amount onto "other debts".
In terms of the net gain of 61,993 over last month. Was virtually all due to stock performance. I actually took a big hit on the bond subscription in terms of paying for the spread (I think the bank was offering the 5% time deposit and the 1.33% financing package so as to get you to purchase bonds on their platform where the spread is something ridiculous, like 2% between bid/ask). So when I bought a bond at the ask of say 101, when it shows up in my account, it's marked at bid of maybe 99, so that's where I took a big hit. Additionally, there's all the accrued interest I had to pay that wont show up in the bond value.
I feel like I'm finally at a point where I'm satisfied with just turning a blind eye to my asset allocation. The income generated was something I was targeting as I venture off into starting a new business and no longer draw a salary.
For my age, I realize it's quite fixed income heavy, but that being said, because of the high risk approach I'm taking with my career, I feel it balances out overall. There is obviously also the fact that it's a levered fixed income portfolio adding back some of that risk.