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Old 11-11-2022, 04:51 PM   #81
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I see a couple 5.0-5.1% 3-year CDs at Schawb. May buy some of those next week.
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Old 11-11-2022, 08:00 PM   #82
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All CD inventory over a year now wiped out at Schwab and Fidelity except some 6 year and up callable CD's.
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Old 11-11-2022, 10:04 PM   #83
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The longer CDs aren't showing on Vanguards site today either. But they posted a note that more may be listed after Friday or after the markets get going again next week. I hope so as I had my eyes on a 3 yr CD but didn't act quick enough.
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Old 11-12-2022, 11:58 AM   #84
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I picked up a 2 year 4.9% brokered CD (non callable) from Vanguard a few days ago. I also put a little in 2 month 3.7% brokered CD. I looked today and didn't see any of the 4.9% CD's anymore, but they had a lot of shorter duration CD's above 3.5%. I'm getting 3% now on my Discover high interest savings account, so those don't look as attractive anymore.
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Old 11-12-2022, 01:21 PM   #85
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Originally Posted by mountainsoft View Post
I picked up a 2 year 4.9% brokered CD (non callable) from Vanguard a few days ago. I also put a little in 2 month 3.7% brokered CD. I looked today and didn't see any of the 4.9% CD's anymore, but they had a lot of shorter duration CD's above 3.5%. I'm getting 3% now on my Discover high interest savings account, so those don't look as attractive anymore.
I just set up a taxable account at Vanguard. In a few days, after the connection is made to my bank, I'll take advantage of the VMFXX money market at Vanguard. ( 3.2% liquid, can't beat that). Then I'll scope out the CD offerings.
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Old 11-12-2022, 01:52 PM   #86
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I just set up a taxable account at Vanguard. In a few days, after the connection is made to my bank, I'll take advantage of the VMFXX money market at Vanguard. ( 3.2% liquid, can't beat that). Then I'll scope out the CD offerings.
Fidelityís high yield money market pays 3.75%
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Old 11-12-2022, 06:42 PM   #87
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Originally Posted by mountainsoft View Post
I picked up a 2 year 4.9% brokered CD (non callable) from Vanguard a few days ago. I also put a little in 2 month 3.7% brokered CD. I looked today and didn't see any of the 4.9% CD's anymore, but they had a lot of shorter duration CD's above 3.5%. I'm getting 3% now on my Discover high interest savings account, so those don't look as attractive anymore.
I've been buying CDs in $10K chunks the past few weeks on Vanguard and notice the rates dropping the past few days, despite the Fed just adding another .75. This seems odd, like maybe the institutions offering CDs on Vanguard are expecting a near-term (6-12 month) pull-back by the Fed. I was hoping for something in the 5% range by now. Now I am debating to buy a couple more before the rates head further down.
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Capital One CD
Old 11-23-2022, 12:11 PM   #88
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Capital One CD

[QUOTE=Freedom56;2852686]They materialized and vanished yesterday. They were transported to our accounts. This was a far better deal than 5 year treasuries.

Symbol 14042RVN8
Description CAPITAL ONE NATL ASSN VA CD 5.00000% 11/16/2027
Shares + 250,000.000
Price 100.00
Amount -$250,000.00
Settlement Date 11/16/2022


I got in on this too, but at 4.9%. Itís my first time buying a CD through a brokerage (Fidelity). I have a couple of questions:

1) What does the VA stand for in the description of the CD?

2) It said the interest was paid semiannually. Does the interest go to the cash account every 6 months?

3) Since buying it, it says I have an unrealized capital loss of a couple hundred dollars. How can that be true for a CD?

Thanks for helping this brokered CD newbie.
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Old 11-23-2022, 12:15 PM   #89
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1. Virginia, where Capital One is headquartered 2. yes, the interest is deposited into your cash account 3.CDs, like bonds, change in principal value as markets dictate. However, you are going to get the full principal back as long as you hold until maturity (you can ignore the day-to-day changes in the CD's value).
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Old 11-23-2022, 12:22 PM   #90
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Originally Posted by LaDolceVita View Post
I got in on this too, but at 4.9%. It’s my first time buying a CD through a brokerage (Fidelity). I have a couple of questions:

1) What does the VA stand for in the description of the CD?

2) It said the interest was paid semiannually. Does the interest go to the cash account every 6 months?

3) Since buying it, it says I have an unrealized capital loss of a couple hundred dollars. How can that be true for a CD?

Thanks for helping this brokered CD newbie.

1) Not sure what VA stands for (maybe Virginia if that's where the bank is that's offering the CD)
2) Yes, that is the way it works on my Schwab brokered CD's
3) Again at Schwab, as I understand it, the "loss" shown is what the CD's estimated worth is, if sold on the secondary market "at this time". However, you still get the full original purchased value back, if it's held until maturity.


Hope that helps/makes sense.
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Old 11-23-2022, 12:33 PM   #91
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I think some of these callable CD's and securities may end up being fool's gold.

Just concerned about rate drop. In a slow-growth economy, we should have relatively low rates and that is what the 10-year seems to be signaling (yes, even with "quantitative tightening", how about that?).

And the recent inflation readings are quite low if you annualize.

We may be back to low rates (but not zero of course) fairly quickly.

I definitely am extending maturities out to 5 years where indicated.

Surely we all recall when the short end had the good rates back in what, 2018? Those rates were great but were also a bit of fool's gold as we had to reinvest at much lower rates.

Maybe we get another crack at better long rates, but we will see.

The good news is lower rates will be great for equities.
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Old 11-23-2022, 12:44 PM   #92
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I think some of these callable CD's and securities may end up being fool's gold.
Yep, I expect them to be "called" as soon as new issue equivalent term CD's drop just a few tenths to half a point below the callable rate.
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Old 11-23-2022, 01:12 PM   #93
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Yep, I expect them to be "called" as soon as new issue equivalent term CD's drop just a few tenths to half a point below the callable rate.
I believe the Capital One CD we are discussing is NOT callable, correct?
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Old 11-23-2022, 01:32 PM   #94
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I believe the Capital One CD we are discussing is NOT callable, correct?
See the details in post 66 for this CD. It's not callable
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Old 11-24-2022, 05:35 AM   #95
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Yep, I expect them to be "called" as soon as new issue equivalent term CD's drop just a few tenths to half a point below the callable rate.
I agree, just picked up a 4.75 5 year at an online bank. Good for now. I have had many callable cdís and bonds called over the years
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Old 11-24-2022, 06:22 AM   #96
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[QUOTE=LaDolceVita;2857777]
Quote:
Originally Posted by Freedom56 View Post
They materialized and vanished yesterday. They were transported to our accounts. This was a far better deal than 5 year treasuries.

Symbol 14042RVN8
Description CAPITAL ONE NATL ASSN VA CD 5.00000% 11/16/2027
Shares + 250,000.000
Price 100.00
Amount -$250,000.00
Settlement Date 11/16/2022


I got in on this too, but at 4.9%. Itís my first time buying a CD through a brokerage (Fidelity). I have a couple of questions:

1) What does the VA stand for in the description of the CD?

2) It said the interest was paid semiannually. Does the interest go to the cash account every 6 months?

3) Since buying it, it says I have an unrealized capital loss of a couple hundred dollars. How can that be true for a CD?

Thanks for helping this brokered CD newbie.
If you bought the 5 year 5% non-callable CD on the secondary market with a YTM of 4.9% you paid slightly over par. This means you get the 5% coupon paid twice annually and deposited in your cash account. At maturity you get $100 face value of the CD back which would be slightly lower than what you paid resulting in the 4.9% yield instead of 5%.
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Old 11-24-2022, 07:25 AM   #97
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bought the 5 year 4.97 at pelican state credit union. went pretty smooth and seemed to be easy to deal with time will tell. still withheld some funds to see if there will be further increases in cd rates. time will tell If I did the right thing, but it looked like rates were starting to head south. thanks
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Old 11-24-2022, 10:24 AM   #98
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bought the 5 year 4.97 at pelican state credit union. went pretty smooth and seemed to be easy to deal with time will tell. still withheld some funds to see if there will be further increases in cd rates. time will tell If I did the right thing, but it looked like rates were starting to head south. thanks
The Feds have already stated they'll be increasing rates in both December and February. The only question is whether it'll be .50 or .75%. Most agree with .50 being that figure.

Rates may fluctuate week to week but in general, we'll see increased rates well into next year if not further. But yes, always a gamble with chasing interest rates.
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Old 11-24-2022, 10:58 AM   #99
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Just picked up a one year CD at Citibank paying 4.15%..... Hard to predict where rates will be in a year. If they go up, I'll roll over or add. But if they go down, I expect the stock market will be going up!
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Old 11-24-2022, 11:16 AM   #100
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Buy treasuries if you are concerned about calls.
Also regarding rates, if they drop so too will equities. Rates don’t drop in a booming economy - just the opposite.
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