(I now blog weekly on frugal living, personal finance & earlier retirement at:
In 2013, I took 20% of my investing capital and moved it from high dividend stocks to high yield bonds. I did that because a portfolio with stocks and bonds was supposed to be safer than an all-out stocks portfolio. Boy, did that theory go down in flames for me!
I bought into 9 corporate bond positions after doing A LOT of financial analysis of the companies involved. It was for naught. Four of the companies did unnecessary VOLUNTARY bankruptcies to get out from under their debt. Another four exercised tender offers for their bonds that left its bondholders grasping the short end of that transaction stick.
A year and a half after going into those bonds, I was all out of them. But I had incurred a $2740 out-of-pocket loss and missed out on about $9000 to $10,000 in dividends I would have collected if I had left the money in high yield stocks.
So, lesson learned. Goodbye bonds. And good riddance.
(You can read the whole gory story on my main blog at retiredtowin.com.)