Corporate and Agency GSE Bond DEALS and NEW ISSUES

[UpQuark]

...
If it were me, I might consider 06745PKZ3 (Barclay's) A1 5.55% being offered at $99.15 (5.61% yield) 2054 maturity, 2029 first call, appears to have SFP

Thanks for that, I bought 3 now.

 

[PhotoAviation61]

New issue on FIDO. FHLB 5.75 2/20/29. 3130AYUU8. The reason I bring this new issue up is that the first call date is listed as 3/20/24. That's 21 days after the settlement day. Why the very fast first call date?

 

[imbatman]

yeah seems like most the new agencies are 30-90 day calls (they are clearly hedging on rate hikes)....has really soured me on the new issues for anything other than as a MM alternative with a little higher rate and some minor tax savings

 

[imbatman]

Interesting new issue on Fido:
Deutsche Bank
Unrated but typically A1-A2 I believe
25160Y819
Non-Callable Matures 08/23/2027
7% for 6-months then SOFR (5.3 today) + 1.0%

 

[olyveoil]

Interesting new issue on Fido:
Deutsche Bank
Unrated but typically A1-A2 I believe
25160Y819
Non-Callable Matures 08/23/2027
7% for 6-months then SOFR (5.3 today) + 1.0%

hmmm. not avail. on Schwab

 

[savory]

ROYAL BK CDA SER J MTN 5.02000% 02/13/2032

Cusip: 78014RYW4, Moody A1

Rate a little low but first call date 2/29 which encouraged my interest.

Thoughts about waiting or a decent buy for now.

Thanks

 

[njhowie]

Interesting new issue on Fido:
Deutsche Bank
Unrated but typically A1-A2 I believe
25160Y819
Non-Callable Matures 08/23/2027
7% for 6-months then SOFR (5.3 today) + 1.0%

Deutsche Bank is risky. Avoid.

 

[jldavid47]

yeah seems like most the new agencies are 30-90 day calls (they are clearly hedging on rate hikes)....has really soured me on the new issues for anything other than as a MM alternative with a little higher rate and some minor tax savings

There is a 10-year callable FHLB available at Schwab this morning with 1 year of call protection

FHLB 5.625% 02/14/2034 Callable
CUSIP: 3130AYVE3
Call Provision: Daily beginning 2/14/25 with 5 days notice

I bought some to replace a FHLB note (5.5%, shorter term) that is being called next week.

 

[jldavid47]

Deutsche Bank is risky. Avoid.

What njhowie said.

 

[Cat-tirement]

ROYAL BK CDA SER J MTN 5.02000% 02/13/2032

Cusip: 89114XE33, Moody A1

Rate a little low but first call date 2/29 which encouraged my interest.

Thoughts about waiting or a decent buy for now.

Thanks

This CUSIP seems to be from TD Bank and doesn't match those terms, might you have copied the wrong one?

 

[RetiredAndLovingIt]

Interesting new issue on Fido:
Deutsche Bank
Unrated but typically A1-A2 I believe
25160Y819
Non-Callable Matures 08/23/2027
7% for 6-months then SOFR (5.3 today) + 1.0%

I asked our old friend Freedom about Deutcshe bank recently and he said he would not buy DB bonds.

 

[imbatman]

Great to know about DB, thanks to everyone providing more context. I didn't purchase these (not really buying much corporate right now TBH) and was just passing along.

 

[savory]

This CUSIP seems to be from TD Bank and doesn't match those terms, might you have copied the wrong one?

You were right. I used the wrong cusip. I edited my original post and here is the right one 78014RYW4.

Thanks!!

Here is my original post with the right cusip:

ROYAL BK CDA SER J MTN 5.02000% 02/13/2032

Cusip: 78014RYW4, Moody A1

Rate a little low but first call date 2/29 which encouraged my interest.

Thoughts about waiting or a decent buy for now.

Thanks

This is an edit and I am really confused. Going back to the Fido bond page, I put in the Cusip from above and it says Fido is not selling this bond. Earlier though, when I wrote my post, I was able to order it and on the "execution" page that shows orders, it says "execution pending" I assume I am in a que but not sure. What I decided to do is order the bond then ask my question. If the feedback I receive from ER group convinces me that this is a bad buy, I will cancel my order. Thanks again

 

[PhotoAviation61]

FIDO new issue.

Bank of America 2/33/2039 5.5%
1st call 2/22/27
06055JDK2

15 years a bit long for me.

Looks like we are getting some longer call lengths lately. I'm waiting for yields to increase closer to 6% for "A" rated corporates. I'm not sure if we will get there though.

 

[pb4uski]

....I'm waiting for yields to increase closer to 6% for "A" rated corporates. I'm not sure if we will get there though.

Yeah, I think that seeing 6% on 5-10 year A-rated corporates seems unlikely.

ETA: took a quick look on Schwab. Highest 2029-3024 maturity A-rated issue that I could find was a 2034 maturity Athene Holdings issue that was split rated A-/Baa1 and yielded 5.918% (04686JAG6). If both ratings must be A then the best I could finds was a 2033 maturity JPM issue that was rated A-/A1 and yielded 5.779% (48130CBN4)... so maybe!

 

[imbatman]

.....2033 maturity JPM issue that was rated A-/A1 and yielded 5.779% (48130CBN4)...

Callable starting August 2025 just FYI

 

[HF63]

Callable starting August 2025 just FYI

Price is above par right know in Schwab

 

[imbatman]

Anyone here do their own taxes and use H&R Block? Had some discounted bonds that I sold for a gain before maturity that Fido properly reported with Accrued Market Discount on my 1099B. When I go through validating the imported 1099B in the H&R software, they tell me "Your market discount adjustment is considered interest income. Tell us the amount here (MY NOTE: requires entering as negative, which removes the capital gain), but you'll also need to enter it in Interest Income on Form 1099-INT."

They just trusting me to go and throw that out there somewhere on my own? Seems bad to negate it here and just manually add that random amount onto a pre-existing amount already populated in the 1099-INT (now they won't match when the IRS gods do their validations). Has anyone done this before?

 

[Montecfo]

I do not think waiting for higher yields is worthwhile at this point, except for the 10-20 bp we got in some issues today.

 

[imbatman]

3130AYZN9
FHLB AA+
6.15%
Matures 02/16/2039
First Call 05/16/2024

On Fido - been a bit since new was over 6%, in fact they just announced they are calling one of my 6.15% for later this month

 

[UpQuark]

... When I go through validating the imported 1099B in the H&R software, they tell me "Your market discount adjustment is considered interest income. Tell us the amount here (MY NOTE: requires entering as negative, which removes the capital gain), but you'll also need to enter it in Interest Income on Form 1099-INT." ...

I wonder if that was what I was struggling with, I had an amount in column 1f of a 1099-B and the Fido page was adding it to the gain but when I used the Express1040 site to do my taxes their software subtracted the gain. I didn't see it added to interest tho. When I submitted my return it told me the IRS needed a copy of my 1099-B. I'd never needed to add that as an attachment before, but all this retirement financial stuff is new to me.

I hope the IRS doesn't have a problem with it.

 

[UpQuark]

Does 12572QAF2 seem okay? I accidentally bought three times what I wanted to buy (didn't notice that I'd bought some before, then mysteriously had two orders for more on the same day - I have no idea what I did, maybe I left a tab open and somehow submitted the order twice).

I am trying to only buy tiny quantities of each different Corporate bonds since I am pretty clueless about them, so now I have an uncomfortable amount of 12572QAF2. Should I sell it or just relax and keep it? On the Fido page it is worth less than I bought it for (and it only settled yesterday, I hope it is normal for bonds to go down, maybe it is just because of ask/bid spreads or minor market fluctuations in price, I hope).

 

[imbatman]

Does 12572QAF2 seem okay?

My five second take is looks pretty darned decent - AA3 is pretty rare to find in corporate bonds (i.e. even BOA is only A1). 20-year at 5.3% (selling at 5.2%) with a make whole call, otherwise not callable until 2043. I mean 5.2% is decent and will probably be higher than the average rate over the next 20-years. If you have more concentration here than you like, probably not a big hit if you sell part of your stake.

If I were buying corporate (not really for me in a high tax state and mainly have taxable play funds)....I might would consider trading a little higher rate (5.687%) for a little shorter call protection (starting Feb 2025) in something like 45906M4T5 (AAA rated) or 78014RQG8 (A1 rated), both on Fido secondary.

In New issue, Fido also has 06055JDK2 (BOA, A1 5.5% first call in 2027). Honestly, I have been buying a decent amount of Taxable Munis over Corporate just because better rates and better credit ratings.

Always a constant juggle of call protection / rate lock / credit rating / taxability......good luck!!

 

[njhowie]

Though I've said to myself not to purchase any further agency bonds because they're all being called, I did just buy one this morning.

3133EPQX6 FFCB 6.25% Maturity 7/26/2038

Paid 99.9 + 0.1 = 100.0

Figured if they call, they call, I don't lose anything. However, it's been continuously callable since October and hasn't been called yet, so who knows?


Update:
Just also got 3133EPJA4 FFCB 6.15% Maturity 5/10/2038 also continuously callable since August, paid 99.194 + 0.1 = 99.294

 

[imbatman]

FYI Fido has new issue (3130AYZJ8) FHLB 6.25% 2044 call protected for 3-months until May 2024

I am also good using these for short-term with full expectation of being called around the call date.....