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Stock Quitters Portfolio:
Lock In a Predetermined Gain of Up to Nearly 100% in Four Years

Every once in a while, you get a good stock that doubles… triples… maybe even quadruples your money in a few short years.

We all love those stocks…

But it’s the remaining stocks in the market that can be nerve-wracking…

Especially with all the volatility we’ve seen lately.

Most people can’t stand the uncertainty of it all… the constant ups and downs… the vulnerability to elections and pandemics and who knows what else… and the dramatic crashes that occur in the stock market…

That’s why my VIP Trading Service Oxford Bond Advantage is dedicated to teaching Stock Quitters how to use the power of certain bonds to increase their returns.

Now, I’m not suggesting that you pull your money out of the market. Instead, we’ve been sidetracking stocks by investing in the bond market.

And here’s the strangest thing: You can often get BETTER returns than you can in the stock market.

The bonds I’m recommending today are a very special type of bond – I call them superbonds. They offer much bigger returns… locked in and backed by legal contracts.

Most importantly, we’ve been able to collect these returns with peace of mind, not worrying about a sudden market crash, a political event or a pandemic cratering our hard-earned savings.

And if you’re reading this report, you’ll learn how to get that peace of mind for yourself… with an untouchable return on your nest egg.

In this report, you’ll learn about the three superbonds I promised you…

They all meet my criteria…

  • Sufficient cash flow to cover their debts
  • Strong leadership
  • Reputable companies that aren’t flash-in-the-pan trends
  • Expected returns that are better than the stock market average.

Keep in mind that the prices and returns of these bonds are as of October 2023. The exact prices and returns you receive may be different.

Three Superbonds to Grow Your Nest Egg

Superbond No. 1: iHeart Communications

IHeart is one of the largest audio media content providers in the world, controlling a portfolio of leading radio programs and a rapidly growing collection of podcasts.

The company’s profits are driven by advertising revenues…

As an advertiser, iHeart has built a powerful platform that reaches 90% of Americans. That is unparalleled access to the American consumer, and as the reach of television has declined, iHeart continues to dominate.

This is a valuable platform, to be sure.

And I believe the market anticipating the strong boost in advertising revenue that the 2024 political season will bring will cause the price of its bonds to increase.

For the first six months of 2023, iHeart’s business generated $94 million in free cash flow. Management has guided for more free cash flow in the final two quarters of 2023.

With improved political ad spending, free cash flow in 2024 should be even better.

That free cash flow can be used to help reduce iHeart’s debt load. Over the past couple of years, iHeart has been able to chop almost $500 million in long-term debt.

I’d like to see the company cut another $500 million in debt over the next 24 months.

Currently, iHeart is sitting with access to lots of liquidity. As of the middle of 2023, iHeart had $750 million in dry powder.

With the business also generating free cash flow, that is a comfortable position to be in.

The company has no debt maturities in the near future. That means iHeart has plenty of time to accumulate cash prior to the maturity date of the bonds I’m recommending: the iHeart Communications (CUSIP 45174hbd8) May 1, 2027, 8.375% coupon bonds.

I expect iHeart to have a very good stretch ahead.

Action to Take: Buy the iHeart Communications (CUSIP 45174hbd8) May 1, 2027, 8.375% coupon bond at $70 ($700 per bond) or lower. The bond is rated CCC+ by S&P Global Ratings.

At the current trading price (as of this writing) of $63 ($630 per bond), you will lock in a MEAR (minimum expected annual return) of 30.1% and a total return of 105% if held until maturity.

You will receive eight interest payments of $41.875, minus $42.45 in accrued interest, plus a gain of $370 at maturity from buying at a discount to face value, for a holding period of 41.95 months at a cost of $630 per bond.

The calculation is as follows…

8 x 41.875 – 42.45 + 370 / 41.95 / 630 x 12 = 30.1%

(For the sake of simplicity, the equation above – and the others like it in this report – is calculated from left to right rather than using standard order of operations. In other words, hit enter after each operation.)

At maturity, you should expect about a 105% total gain from this bond.

I had promised you about a 91% total return on this bond. But the return based on the $630 price is now up to 105%. Remember, that is guaranteed by law. Unless the company goes bankrupt, you will earn 105% if your entry price is $630.

Superbond No. 2: Hudson Pacific Properties

Hudson Pacific Properties owns a portfolio of real estate holdings. Currently, the properties include 15.8 million square feet of office buildings and 1.5 million square feet of media and entertainment properties.

The pandemic wasn’t a real boon for owners of office space, but with a solid balance sheet, Hudson got through it.

But now the return of workers to offices has brightened the outlook for future sales and earnings. (Hudson owns studios in Los Angeles, so it just overcame another hurdle with the end of the Hollywood writers strike.)

What differentiates this business from other office real estate players is the tenant base to which Hudson leases. Hudson focuses on leasing to technology and media companies.

Hudson is not renting to high-risk startups… but rather to established players. Its top five tenants are industry titans: Google, Amazon, Netflix, Riot Games and Salesforce.

However, everything hasn’t been all roses for the company. Shareholders are not happy campers. The stock price has declined more than 50% from its high in January, and the dividend was recently suspended.

But those events don’t affect bondholders. In fact, with bondholders’ priority over stockholders, the dividend suspension is good news. The dividend suspension will save the company about $143 million annually, creating more funds to pay bondholders.

And in the third quarter, Hudson raised $72 million through the sale of two office properties, further fortifying the balance sheet.

In 2022, funds from operations (FFO), a measure of cash flow for real estate investment trusts, was approximately $237 million, or $1.86 per share. Management expects FFO to be around the same for 2023. Remember, FFO is cash left over after the company has paid all expenses, including bond interest.

The risk-reward profile of an investment in the Hudson Pacific Properties (CUSIP 44409mad8) February 15, 2028, 5.95% coupon bonds specifically is positive for a couple of reasons.

First, the average length of lease across Hudson’s portfolio is six years. That means the lease revenue that Hudson generates is locked in for a year past the maturity of these bonds.

Second, with more than $729 million in total liquidity available, Hudson has sufficient liquidity to pay off its upcoming debt obligations.

Also, while Hudson’s real estate portfolio is worth more than $7 billion, the total net debt carried by the business is $4.95 billion. That means the debt-to-asset ratio of this real estate business is about 71%.

As bondholders, we are lenders to Hudson. This real estate is our collateral. If the company were to ever declare bankruptcy, we would have ample collateral to cover what was owed to us. The real estate assets are worth 30% more than the total debt that the business owes.

It won’t come to that, but it is always great to be extremely well covered in every possible outcome.

This superbond opportunity is quite rare because it is considered investment grade. (Bonds rated BBB- and higher are investment grade and are considered very safe. A rating below BBB- is considered more speculative.)

We don’t often see investment-grade bonds with these kinds of returns, which is why I am recommending it today.

Action to Take: Buy the Hudson Pacific Properties (CUSIP 44409mad8) February 15, 2028, 5.95% coupon bonds for $85 ($850 per bond) or lower. Use a limit order to make sure you pay no more than $850 per bond. The bond is rated BBB- by S&P Global Ratings.

At the current trading price (as of this writing) of $82 ($820 per bond), you will lock in a MEAR of 12.4% and a total return of 53.1% if held until maturity.

You will receive nine interest payments of $29.75, minus $12.88 in accrued interest, plus a gain of $180 at maturity from buying at a discount to face value, for a holding period of 51.48 months at a cost of $820 per bond.

The calculation is as follows…

9 x 29.75 – 12.88 + 180 / 51.48 / 820 x 12 = 12.4%

At maturity, you should expect a 53.1% total return from this bond.

Superbond No. 3: Navient Corp.

Navient Corp.’s (CUSIP 78490fce7) June 15, 2028, 5.55% coupon bonds, which are trading under par, will provide us with the kind of income stream we’re looking for.

Navient’s primary income source is interest income generated from the ownership of a huge portfolio of $40 billion worth of federally guaranteed loans from the Federal Family Education Loan (FFEL) program.

Navient is the single largest holder of FFEL loans, which is a nice place to be.

These government-guaranteed loans are a cash cow that carry virtually no risk for Navient. The government guarantee behind these loans means that even if an FFEL borrower defaults on their loan, Navient still gets paid.

I like the sound of that as a Navient bondholder.

If Navient’s cash flow stream is guaranteed, our cash flow stream as bondholders is also guaranteed.

The only bad news is that this cash cow isn’t going to live forever. In 2010, Congress passed the Health Care and Education Reconciliation Act, which ended the origination of new FFEL loans.

That means Navient won’t be adding any new FFEL loans to its portfolio. It just gets to milk that cash cow of existing loans through the remainder of the loans’ amortization schedules. In financial industry terms, this means the current $40 billion FFEL portfolio is in “runoff.”

Navient’s FFEL portfolio will be repaid over the next 15 years. That is long after our bonds will have been repaid in full.

That means we’ll have a base of secure cash flows that will be funding the interest payments on our Navient bonds through maturity.

In addition to the $40 billion FFEL portfolio, Navient has a growing $22.3 billion private student loan portfolio.

This is the future of the company.

Going forward, growth in that portfolio will replace the declining amount of revenue that is generated from the FFEL loans.

You may be wondering whether President Biden’s ongoing efforts to forgive student loans are a problem for Navient. For Navient bondholders, it is a nonissue.

Student loan forgiveness would simply mean that Navient would get paid in full by the government for any loans that are forgiven. The cash from those repayments can then be used by Navient to either make private student loans or repay debt.

But with persistent inflation and higher interest rates, Navient is taking a more cautious and higher-quality approach to originating more student and consumer loans.

Companies in the lending industry are being punished by investors due to concerns about the health of the economy, and high interest rates stoke fears about loan repayments.

That’s a valid concern and is negatively impacting the price of these Navient bonds. But that is creating a great opportunity for you.

Nearly 100% of principal and interest from that FFEL portfolio is guaranteed by the U.S. government.

The projected cash flow from that portfolio is $2.6 billion through 2027. The projected cash flow from Navient’s consumer lending portfolio is $3.5 billion through the end of 2027. (The total FFEL cash flow is projected to be $6.8 billion, but the company has not provided annual projections beyond 2027.)

The bottom line is this: I’m confident the FFEL portfolio on its own will generate more than enough cash to cover our bonds that mature in June 2028.

With Navient’s good-as-gold FFEL portfolio… the 13.2% MEAR that we can lock in with these bonds today is simply too good to pass up.

Action to Take: Buy the Navient Corp. (CUSIP 78490fce7) June 15, 2028, 5.55% coupon bonds for $82 ($820 per bond) or lower. Use a limit order to make sure you pay no more than $820 per bond. The bond is rated B+ by S&P Global Ratings.

At the current trading price (as of this writing) of $78 ($780 per bond), you will lock in a MEAR of 13.2% and a total return of 61.1% if held until maturity.

You will receive 10 interest payments of $27.75, minus $21.29 in accrued interest, plus a gain of $220 at maturity from buying at a discount to face value, for a holding period of 55.46 months at a cost of $780 per bond.

The calculation is as follows…

10 x 27.75 – 21.29 + 220 / 55.46 / 780 x 12 = 13.2%

At maturity, you should expect about a 61.1% total gain from this bond.

Make Your Portfolio Super

Together, these bonds make up my Stock Quitters Portfolio. These recommendations are expected to produce total returns of about 105%, 53% and 61%, respectively.

And remember, these returns are contractually obligated!

Opportunities like these are exciting, especially in a market besieged by ongoing supply chain issues and persistent inflation (among other problems).

But here, we’ve got predictable returns… protected by law.

To me, bond investing gives you the best of both worlds: consistent gains and very limited downside risk.

And with these superbonds, you can juice your portfolio’s growth just as simply.

However, keep in mind…

The expected total return on these bonds will fluctuate, depending on when you get in on them. So try to buy them around the prices I mentioned above.

Don’t chase the prices up on these. Just wait for them to come back down before buying so you can maximize your total return.

Remember, these are speculative bonds. But if they meet their obligations as required by law, the returns will be spectacular.