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Netflix, Warner Bros bonds among $100 million purchased by Trump

BY Reuters | CORPORATE | 08:51 PM EST

By Nandita Bose

WASHINGTON, Jan 16 (Reuters) - U.S. President Donald Trump purchased about $100 million in municipal and corporate bonds from mid-November to late December, his latest disclosures showed, including up to $2 million in ?Netflix and Warner Bros Discovery (WBD) bonds just weeks after the companies announced ?their merger.

Financial disclosures posted Thursday and Friday showed the ?majority of Trump's purchases were municipal bonds ?from cities, local ?school districts, utilities and hospitals. But he also bought bonds from companies ?including Boeing Occidental Petroleum and ?General Motors.

The investments were the latest reported assets added to Trump's expanding portfolio while he ?is in office. It includes ?holdings ?in sectors that benefit from his policies, raising questions about conflicts of interest.

For example, Trump said in December ?he will have a say in whether Netflix (NFLX) can proceed with its proposed $83 billion acquisition of Warner Bros Discovery (WBD), which faces a rival bid from Paramount Skydance (PSKY). Any deal to acquire Warner Bros will need ?regulatory ?approval.

A White House official, who spoke on the condition of anonymity, said on Friday that Trump's stock ?and bond portfolio is independently managed by third-party financial institutions and neither Trump nor any member of his family has any ability to direct, influence or provide input regarding how the portfolio is invested.

Like many wealthy individuals, Trump regularly buys bonds ?as part of his investment portfolio. He previously disclosed at least $82 million in bond purchases from late August to early October.

(Reporting by Nandita ?Bose in Washington; Editing by Sergio Non and Cynthia Osterman)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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