[L,TOWM]

A lot of stuff in the decade of 2012 - 2021 (inclusive) went out at a premium. One thing to have 20 points of premium amortized over 30 years; its another thing entirely to have something valued at 109.5 on 12/31/21 get marked to 91.25 by 12/31/22. The 100 Par payable in 2035 is not such a great thing for the bank that bought it in 2017 when it was issued at 117.

Our company (its a smaller public finance underwriter) is on the list of places the FDIC sends out “we got shit to sell!” e-mails. A bond issued by Comal ISD, AAA paper backed by the Texas Permanent School Fund was sold by our company at 117 and a fraction in 2017. It matures in ‘38. Asking for 86. I saw bids for 65. AAA PAPER PAYING 4%!!! 65!!!!

[TexasGator]

“get marked”

These assets don’t get marked to market.

[Alberta's Child]

Having a keen interest in the remarkable bond investing approach of Michael Milken has made me steer clear of any long-term investments in AAA-rated bonds.

The guy was an absolute genius.