Corporate and Agency GSE Bond DEALS and NEW ISSUES

[COcheesehead]

3130AXGD4 FHLB (AAA, GSE) 7.0% is back (15Yr w/ 3 month call)....has a 10 purchase minimum

I put a little idle cash into these.

 

[Z3Dreamer]

I thought I would grab me some of the 3130AXGD4 out of my Vanguard IRA. (Thank you imbatman and others for educating me in agency bonds.)

The Vanguard search tool found the bond, but would not let me buy. The Vanguard fixed income representative did not understand why. Much time on hold. Answer is that Vanguard does not sell New Issues, only secondary market. What?

I have a FIDO account. Walked that trade through to the Preview Order screen. It sure enough was going to let me buy this bond.

Is this a known issue with Vanguard? Workaround would be to wait until the date it closes (10/26, I believe) and buy in the secondary market at Vanguard. Other than move my money to FIDO and trade, any workarounds?

 

[imbatman]

Honestly, I think unlikely this will end up on secondary at face value or lower (right now the best I see in secondary is 6.69% asking 99.50 so about 6.74%)....plus your secondary fees with Vanguard.

For me if I am paying a premium and a fee, I start wondering if I want this one if it may be called in 3 months..........main advice is to move your bond trading to Fido. Vanguard sounds just as crappy as Merrill.

 

[COcheesehead]

Honestly, I think unlikely this will end up on secondary at face value or lower (right now the best I see in secondary is 6.69% asking 99.50 so about 6.74%)....plus your secondary fees with Vanguard.

For me if I am paying a premium and a fee, I start wondering if I want this one if it may be called in 3 months..........main advice is to move your bond trading to Fido. Vanguard sounds just as crappy as Merrill.

The original 7% bonds are listed on the secondary market at 99.946 - if you can even find an offer at that price.

 

[COcheesehead]

According to Fidelity there is only $2,800,000 left of the $30,000,000 offering. I bet they will be gone by the end of the day.

 

[Z3Dreamer]

The original 7% bonds are listed on the secondary market at 99.946 - if you can even find an offer at that price.

I use FIDO and Vanguard. Could not find this bond on the secondary market. How did you find it?

Again, thanks to all for educating me. Yes, I found 6.878% bonds on the secondary market so this is just for educational purposes.

 

[COcheesehead]

I use FIDO and Vanguard. Could not find this bond on the secondary market. How did you find it?

Again, thanks to all for educating me. Yes, I found 6.878% bonds on the secondary market so this is just for educational purposes.

I own it and Fidelity uses third party pricing to provide daily mark to market pricing. So somewhere somebody did a transaction at $99.946. Like I said, good luck finding a similar offer.

 

[Z3Dreamer]

I own it and Fidelity uses third party pricing to provide daily mark to market pricing. So somewhere somebody did a transaction at $99.946. Like I said, good luck finding a similar offer.

So, because you own it and Fidelity marks to market, you saw that there was a trade by looking up the bond you own. Thanks.

 

[PhotoAviation61]

According to Fidelity there is only $2,800,000 left of the $30,000,000 offering. I bet they will be gone by the end of the day.

I trade bonds with Fidelity and curious who you contact to get that info? Is that simply a call to their fixed income people?

 

[COcheesehead]

I trade bonds with Fidelity and curious who you contact to get that info? Is that simply a call to their fixed income people?

No, you just enter an order and it shows how many bonds remain.

As of 2:07 MDT, there were 620,000 left. See screen capture attached

Edit: now shows about $3,000,000 left. Wonder if some cancelled prior to filling.

 

[olyveoil]

Already have a large position in 26 week tbills into April 24.
Thinking about extending duration.

Looking at 06055JCM9. 5 yr. 6.50% coupon. callable.

Thoughts?

 

[COcheesehead]

Already have a large position in 26 week tbills into April 24.
Thinking about extending duration.

Looking at 06055JCM9. 5 yr. 6.50% coupon. callable.

Thoughts?

There are lots of investment grade non callable issues with similar or better yields. Why take a chance with a callable?

 

[olyveoil]

Already have a large position in 26 week tbills into April 24.
Thinking about extending duration.

Looking at 06055JCM9. 5 yr. 6.50% coupon. callable.

Thoughts?

There are lots of investment grade non callable issues with similar or better yields. Why take a chance with a callable?

I am new to the Arena. The screen I ran on Schwab was for 2-5 years. almost all callable.

 

[Z3Dreamer]

There are lots of investment grade non callable issues with similar or better yields. Why take a chance with a callable?

How do you filter to find these? On Fido, I set my minimum interest to 6.5%, my term to 10/24 to 10/28. The first one on the list was this: 22550L2H3 CREDIT SUISSE AG NEWYORK NOTE 3.70000% 02/21/2025 Yield is 6.835%. It is not non-callable but with a coupon of 3.7%, it most likely will not be called.

Is this how you do it?

I set the ratings until I only got 17 results.

 

[COcheesehead]

I am new to the Arena. The screen I ran on Schwab was for 2-5 years. almost all callable.

I am not sure about Schwab, but Fidelity has non callable as one of its screening selections so you can search only non callable bonds.

 

[COcheesehead]

How do you filter to find these? On Fido, I set my minimum interest to 6.5%, my term to 10/24 to 10/28. The first one on the list was this: 22550L2H3 CREDIT SUISSE AG NEWYORK NOTE 3.70000% 02/21/2025 Yield is 6.835%. It is not non-callable but with a coupon of 3.7%, it most likely will not be called.

Is this how you do it?

I set the ratings until I only got 17 results.

Sort of. Coupon is important to me because I want current income, so I put in the coupon, the yield, select non callable. Select the quality level and then search. I have to head out otherwise I would post a sample screen for you.

 

[imbatman]

You can screen for (a) bonds with NO call whatsoever (but then probably want to screen for maturity date.....and (b) bonds with first call after xyz date. To get to these, you need to select the + button next to "show more criteria"

 

[COcheesehead]

You can also search by call date so sometimes I find a callable bond, but the first call is in 5 years. You can find some nice stuff that way too.

 

[JC888]

any new A+ IG with good yield bonds interesting to share?

 

[Z3Dreamer]

any new A+ IG with good yield bonds interesting to share?

Could you please explain, a little? Being a newbie to bonds, I don't get A+ and IG and what you consider "good".

 

[JC888]

Could you please explain, a little? Being a newbie to bonds, I don't get A+ and IG and what you consider "good".

Investment Grade Bond that is rated A or better.

Thanks.

 

[Z3Dreamer]

Investment Grade Bond that is rated A or better.

Thanks.

Thanks. Still learning. As far as good rates, the 6.8% agency bonds are not good enough because?

 

[COcheesehead]

Thanks. Still learning. As far as good rates, the 6.8% agency bonds are not good enough because?

The downside to agency bonds is their lack of reliable income, meaning they are callable, which may or may not happen, which goes back to reliability. They are also fairly illiquid so you may or may not be able to sell them prior to maturity.

There are higher yielding, better liquidity out there with just a little more risk, but still investment grade. Investment grade bonds start at BBB- and higher.

 

[Montecfo]

The downside to agency bonds is their lack of reliable income, meaning they are callable, which may or may not happen, which goes back to reliability. They are also fairly illiquid so you may or may not be able to sell them prior to maturity.

There are higher yielding, better liquidity out there with just a little more risk, but still investment grade. Investment grade bonds start at BBB- and higher.

Agency bonds not all callable but new issues generally are.

 

[jgman]

Any concerns with the safety of Goldman Sachs bonds rated BBB+