Buying Corp Bonds

[lawman]

There will be more stuff to buy.

Third time recently I've been too late..Trying to place an order using the bond desk at Schwab is very trying to say the least..What they have on their offerings page seems like stuff no one wants..

 

[lawman]

Third time recently I've been too late..Trying to place an order using the bond desk at Schwab is very trying to say the least..What they have on their offerings page seems like stuff no one wants..

Finally got one...Checked this morning and found Canadian Bank CUSIP 78014RGC8 available under New Issues..Placed and order that should settle 8/29/22..Just looked again and it is no longer avaialble..

 

[aja8888]

Finally got one...Checked this morning and found Canadian Bank CUSIP 78014RGC8 available under New Issues..Placed and order that should settle 8/29/22..Just looked again and it is no longer avaialble..

Don't forget that Canadian stuff requires you to pay a tax on interest/dividends to Canada. Some stuff is exempt, but I'm not sure what is or is not.

 

[lawman]

Don't forget that Canadian stuff requires you to pay a tax on interest/dividends to Canada. Some stuff is exempt, but I'm not sure what is or is not.

And just how does that work

 

[aja8888]

And just how does that work

I assume the tax will be deducted from your dividend payment. I'm not 100% sure as I have no Canadian stuff so look it up if you want the complete answer.

 

[Freedom56]

I assume the tax will be deducted from your dividend payment. I'm not 100% sure as I have no Canadian stuff so look it up if you want the complete answer.

These notes from Canadian banks are issued in USD and interest is paid in USD. The interest payments will be included in the brokerage consolidate 1099 statement as interest income not dividends. Canadian withholding taxes normally applies to U.S. residents with taxable brokerage accounts in Canada.

 

[lawman]

These notes from Canadian banks are issued in USD and interest is paid in USD. The interest payments will be included in the brokerage consolidate 1099 statement as interest income not dividends. Canadian withholding taxes normally applies to U.S. residents with taxable brokerage accounts in Canada.

Thank you Freedom!

 

[Freedom56]

Thank you Freedom!

Keep in mind that dividends from Canadian corporations are subject to a withholding tax unless they are in a retirement account.

 

[jazz4cash]

Third time recently I've been too late..Trying to place an order using the bond desk at Schwab is very trying to say the least..What they have on their offerings page seems like stuff no one wants..

You should consider checking some other brokers. Fido has a guest access account that lets you see what they have available and explore other features on their site. They usually have around 18 New Issue Corporate notes available. If the pickings get slim Freedom56 will give a call to straighten them out!

 

[lawman]

Keep in mind that dividends from Canadian corporations are subject to a withholding tax unless they are in a retirement account.

So if I bought corporate bonds instead of bank bonds I would have to pay the Canadian tax?

 

[Freedom56]

So if I bought corporate bonds instead of bank bonds I would have to pay the Canadian tax?

No if you bought common or preferred stock of a Canadian company that pays dividends and held them in a taxable account there would be a 25% withholding for Canadian taxes which you claim as a tax credit on your US returns. Bonds pay interest not dividends.

 

[lawman]

No if you bought common or preferred stock of a Canadian company that pays dividends and held them in a taxable account there would be a 25% withholding for Canadian taxes which you claim as a tax credit on your US returns. Bonds pay interest not dividends.

Thanks...I'm pretty much sticking to fixed income these days..

 

[lawman]

It pays to check back..Wanted some of Barclay's 06748XNQ0 but it was not available on the days I checked it..Today I go to my Schwab account, plug in the CUSIP and there it is..I like over 5% on high investment grade note..

 

[jldavid47]

That seems like a MUCH better way...
Still trying to master the correct terms..To me it seems like "bid" would refer to an offer to buy..

All you have to remember is that you sell at the "bid" and buy at the "ask." The "bid" is also sometimes called the "offer" price.