Interesting... thanks for the education! I'm intimidated by bonds so I only buy ETFs.Yes it is. You don't actually get paid any interest. You buy the bond (coupon) at a discount and collect the full face value at maturity. In the case I mentioned, I paid about 83.00 and would have received $100 at maturity. For tax purposes, you have to declare interest each year even although you don't receive it. You also have to add this annual interest to your acb. At maturity, your acb equals the face value so there is capital gain. Not a problem in a registered account, but a lot of accounting in taxable account.
Nomenclature is confusing - Strip bonds, coupon bonds etc. Some info here: Investing in strip bonds (part 1) | Qtrade Investor
Does anyone know if OTPP ever sold and realized some gains on the BB pump? I don't understand why they would sit and let such a market anomaly happen without selling some. They have a very significant position.And I keep hoping the Ontario Teachers Pension sells into this strength. I just can't imagine letting these stupid prices slip through their fingers.
Looks like another 1/3 got sold at 80. Spectacular run today. The rest I will keep and see what happens.Sold about 1/3 of my VIAC into strength. I originally started buying around 15 last year and sold at 74. Biggest gainer of this pandemic portfolio.
I can see it running in to the 80's, but percentage wise there's probably bigger opportunities out there now. Have about 70K in cash available with this.