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Old 09-15-2023, 04:28 PM   #1761
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Schwab requires funds to be in cash account which pays nothing..I buy my treasuries on secondary market I guess..They told me I should not place an order to buy unless I have money in cash account to pay for it
I forgot who your broker was - yeah, dead money.
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Old 09-15-2023, 04:34 PM   #1762
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Brokered CDs are in the name of DTCC (Cede & Co.), interest payments come from the bank to DTCC, then to the broker, then the broker splits out the money to the customers. So the delay can be caused by the bank, DTCC, or the broker.
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Old 09-15-2023, 05:06 PM   #1763
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Schwab requires funds to be in cash account which pays nothing..I buy my treasuries on secondary market I guess..They told me I should not place an order to buy unless I have money in cash account to pay for it

It pays 0.4%. Yes, almost nothing.



I sell necessary MM fund shares a day or two before the settlement date. A hassle, but it works.
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Old 09-15-2023, 05:12 PM   #1764
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That's also a factor when buying brokered C. D.'s..When I buy one I can find nothing offered that settles in less then a week..So my money is dead money for a week..It seems treasuries always settle within a week..Is that correct?
Why is your money dead for a week? I just carry a negative settlement account balance for the purchase amount and then on the settlement date I sell that same amount of SWVXX. The proceeds from the sale of SWVXX and the settlement of the buy then cross that day (or night).
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Old 09-15-2023, 05:19 PM   #1765
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Schwab requires funds to be in cash account which pays nothing..I buy my treasuries on secondary market I guess..They told me I should not place an order to buy unless I have money in cash account to pay for it
No, you misunderstand how the Schwab works. I frequently carry a negative settlement account balance at Schwab. In fact, as I write this of the 8 Schwab accounts that I have two have negative settlement account balances: one for $50k and another for $100k for four new issue bonds that settle between 9/18 and 9/28.
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Old 09-17-2023, 12:20 PM   #1766
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No, you misunderstand how the Schwab works. I frequently carry a negative settlement account balance at Schwab. In fact, as I write this of the 8 Schwab accounts that I have two have negative settlement account balances: one for $50k and another for $100k for four new issue bonds that settle between 9/18 and 9/28.
You are correct, and even though the balances shows "subject to margin", in my calling both Ameritrade and Schwab they ensured me that no margin would be charged (prior to settlement date).

It is still irritating, and I find Fido's setup much easier to keep track of, where they show it in balances as "Committed to open orders" (prior to the auction or CD locking) and then show the debit AFTER my total in positions (prior to settlement). Thus, I can see in one place I am not on margin and that my high interest MM's are there cranking out interest.

It's enough of a hassle factor that I am thinking of moving more of my "fixed" money to Fidelity. One thing stopping me is that Schwab's SWVXX is paying 5.24% vs. Fidelity SPAXX paying 4.97%. So that weighs in Schwab/Ameritrade's favor in terms of return on cash awaiting investment.

ETA: Some 5.5% non-callables have shown up this weekend.
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Old 09-17-2023, 03:04 PM   #1767
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Pretty hard to beat CRFMMF from VG at this time.
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VMRXX
Vanguard Cash Reserves Federal Money Market Fund Admiral Shares
Management style

Active
Asset class

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Category

Taxable Money Market
Risk / reward scale

1
Less

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Expense ratio

0.10%
as of 12/21/2022

7 day SEC yield

5.29%

C
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Old 09-17-2023, 03:50 PM   #1768
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Pretty hard to beat CRFMMF from VG at this time.
SVWXX is 5.24%. It is not worth putting up with Vanguard for 5 bps!
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Old 09-17-2023, 03:55 PM   #1769
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You are correct, and even though the balances shows "subject to margin", in my calling both Ameritrade and Schwab they ensured me that no margin would be charged (prior to settlement date).

It is still irritating, and I find Fido's setup much easier to keep track of, where they show it in balances as "Committed to open orders" (prior to the auction or CD locking) and then show the debit AFTER my total in positions (prior to settlement). Thus, I can see in one place I am not on margin and that my high interest MM's are there cranking out interest.

It's enough of a hassle factor that I am thinking of moving more of my "fixed" money to Fidelity. One thing stopping me is that Schwab's SWVXX is paying 5.24% vs. Fidelity SPAXX paying 4.97%. So that weighs in Schwab/Ameritrade's favor in terms of return on cash awaiting investment.

ETA: Some 5.5% non-callables have shown up this weekend.
Don't get me wrong... I find having to move money in and out of SWVXX because they will not let me designate SWVXX as my settlement account very irritating and I may ultimately move to Fidelity.

I was just responding to lawman's misinformation that you have to have money in your settlement account in order to place a buy. You can place a buy by phone, but not online and then sell SWVXX when it settles.
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Old 09-17-2023, 04:06 PM   #1770
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SNAXX is 5.39%. No sarcastic comments please, we only have $300k in there.
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Old 09-19-2023, 08:28 AM   #1771
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Current best non-callable CD rates at Schwab:

12 mo - 5.50%
18 mo - 5.45%
24 mo - 5.30%
36 mo - 5.05%
48 mo - 4.80%
60 mo - 4.65%


The short end (<=36 months) rose by 5 basis points across the board since last week. 48 and 60 month maturities stayed the same.
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Old 09-19-2023, 03:14 PM   #1772
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Current best non-callable CD rates at Schwab:

12 mo - 5.50%
24 mo - 5.30%
36 mo - 5.05%
48 mo - 4.80%
60 mo - 4.65%


The short end (<=36 months) rose by 5 basis points across the board since last week. 48 and 60 month maturities stayed the same.
Can you tell me how you are finding these CD rates that are non-callable. I am using Schwab and everything I see is callable.
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Old 09-19-2023, 03:18 PM   #1773
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Can you tell me how you are finding these CD rates that are non-callable. I am using Schwab and everything I see is callable.
Try modifying your search and selecting "Non Callable".
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Old 09-19-2023, 06:43 PM   #1774
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Can you tell me how you are finding these CD rates that are non-callable. I am using Schwab and everything I see is callable.
I simply scroll down the list for a given duration until I find the first non-callable.
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Old 09-20-2023, 08:41 AM   #1775
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Try modifying your search and selecting "Non Callable".
To add a little detail to this: Right above where it lists Schwab's Highest-Yielding CDs by Maturity, there is a blue hypertext link Find CDs. The 3rd section down on the Find CDs page, is "include only". There, is the box to click for "callable".
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Old 09-20-2023, 10:44 AM   #1776
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All CD's at Schwab keep creeping up. Very small incremental changes but still going up. 12mo now at 5.55 and 18 month at 5.5

It will be interesting to see what rates do in a week or so after Powell speaks today. I'm guessing they will hold as is "today". Maybe a 70/30 "hold vs .25 increase". What will be interesting to me is his directional comments.
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Old 09-20-2023, 02:28 PM   #1777
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Well as we now know, Powell said no rate changes this time but suggested one more this year. Also he said it's less clear on how long rates will be maintained at this level. But it sounded like longer than previously expected.

So with that, I expect all CD's to continue to trickle up and the inverted yield curve will flatten a bit more.

So my opinion is given free and is my POV, so consider that too!
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Old 09-21-2023, 08:11 AM   #1778
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It was a hawkish pause which was what I expected. The Fed's easiest tool to use is rhetoric. And it is powerful, look how bonds (Treasury yields up noticeably) and stocks (down) are reacting.

They are signalling cuts next year according to the dot plot and that seems correct. Let's say they do a final 25bp in Nov. (They will not assure us it is final). And inflation continues to moderate. And jobs and economic signals further weaken. Then they will probably cut midyear.

Which is about right. If I recall mean time to first cut from last hike is 5-6 months since 1970.

So higher for longer (again, rhetoric) buy not much higher and not for much longer.

This may be another opportunity to lock in better yields for longer duration. I have not seen a lot to buy in my wheelhouse: 5+ years duration, high investment grade, non-call.
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Old 09-22-2023, 09:12 AM   #1779
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Just picked up (ordered) some 5.5% 19-month non-callable brokered CD at Fido. CUSIP is DSN9J2587, ISRAEL DISC BK NEW YORK N Y CD 5.50000% 04/21/2025, FDIC Certificate #19977, Interest payable semi-annually.

I didn't put a ton into this (might regret this decision if it sells out quickly) as I don't have a super lot of cash nor quickly maturing issues. (I am trying to keep some $ in FZCXX just in case something really desirable pops up (either fixed or equities).

Current stats on my fixed investments (across all accounts, including regular old checking yielding 0% etc.): Weighted yield: 5.198%, weighted days till maturity: 347. These are slightly impacted due to having some TIPS (lower % rate but too lazy to calculate inflation adjustment). At the end of February (when I first started tracking month end data), my weighted yield was 4.792%. I've been able to work it up every month, and a year ago it was much lower.
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Old 09-26-2023, 07:57 AM   #1780
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Current best non-callable CD rates at Schwab:

12 mo - 5.55%
18 mo - 5.50%
24 mo - 5.35%
36 mo - 5.10%
48 mo - 4.85%
60 mo - 4.75%

Maturities <=48 months rose by 5 basis points since last week. 60 month maturities increased by 10 basis points.
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