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Old 09-09-2022, 11:43 AM   #421
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New at this and a tad nervous...I like Bank of Montreal CUSIP 06368LAP1. 4.253% and matures 9/14/24...Any reason not buy?
Nothing wrong with that issue.

There is also a step up note from Wells Fargo (new issue). CUSIP is: 95001DCE8

WELLS+FARGO

Coupon End Date Coupon Yield to Maturity
09/22/2025 4.700 4.700
09/22/2026 5.000 4.770
09/22/2027 6.000 4.992
09/22/2028 7.000 5.283

and also this one:

BANK OF NOVA SCOTIA LONDON NOTE
4.25000% 09/16/2024

CUSIP 06417YAA7
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Old 09-09-2022, 12:40 PM   #422
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Nothing wrong with that issue.
Done, thanks Freedom!
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Old 09-11-2022, 09:28 AM   #423
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We've seen the downsides of bond index funds mentioned multiple times, but what about active funds, for example BCOIX? A cheap ER, does this avoid the issues that plague the bond index funds or not really?
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Old 09-11-2022, 10:18 AM   #424
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We've seen the downsides of bond index funds mentioned multiple times, but what about active funds, for example BCOIX? A cheap ER, does this avoid the issues that plague the bond index funds or not really?
BCOIX is down 12.69% YTD.
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Old 09-11-2022, 11:43 AM   #425
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We've seen the downsides of bond index funds mentioned multiple times, but what about active funds, for example BCOIX? A cheap ER, does this avoid the issues that plague the bond index funds or not really?
Unless it's closed-end, any bond fund has the same basic defect.
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Old 09-11-2022, 12:12 PM   #426
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We've seen the downsides of bond index funds mentioned multiple times, but what about active funds, for example BCOIX? A cheap ER, does this avoid the issues that plague the bond index funds or not really?
Check out the yield compared to short term Treasuries, which have no risk of principal if you hold to maturity.

The only way you are going to make money in bond funds over the individual bonds discussed in this thread is if we have a sudden, big drop in interest rates before you can buy back into your bond fund (if you choose to do that once rates drop or level off). The more rates go up, the riskier it is right now to hold onto the funds filled with low yield bonds, like the ones Freedom56 has pointed out, some with yields under 1%. The more rates go up, the less those bonds are worth, and lower the NAV of your fund will go.
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Old 09-11-2022, 12:18 PM   #427
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Check out the yield compared to short term Treasuries, which have no risk of principal if you hold to maturity.

The only way you are going to make money in bond funds over the individual bonds discussed in this thread is if we have a sudden, big drop in interest rates before you can buy back into your bond fund (if you choose to do that once rates drop or level off). The more rates go up, the riskier it is right now to hold onto the funds filled with low yield bonds, like the ones Freedom56 has pointed out, some with yields under 1%. The more rates go up, the less those bonds are worth, and lower the NAV of your fund will go.
See post #424.
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Old 09-11-2022, 12:30 PM   #428
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This is a good article explaining why interest rates are still insanely low. And it mentions what I think is one of aja888's favorite rules, the Taylor rule.

https://seekingalpha.com/article/453...ion-sell-bonds

"Essentially, if the Fed were concerned about controlling inflation, the current Fed Funds rate would be closer to 7% using the Taylor Rule, not the present 2.5% number. So, the Fed is nowhere near a "neutral" level to slow inflation, not even in the same ballpark. If anything, Fed Funds are incredibly low and continue to ENCOURAGE price increases in the overall economy. Having "real" interest rates in the negative -6% range (adjusted for CPI inflation) on the Treasury yield curve is like nothing seen in American history since we officially left a gold standard for dollars in the early 1970s."
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Old 09-11-2022, 12:40 PM   #429
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We've seen the downsides of bond index funds mentioned multiple times, but what about active funds, for example BCOIX? A cheap ER, does this avoid the issues that plague the bond index funds or not really?
That fund has only returned 2% over the last 10 years. That's horrible. CDs would give you better returns. Active funds are only as good as the fund managers. The reality is that most fund managers are morons who don't care what they buy as long as they extract hidden trading fees and management fees. Many Fidelity advisors don't even understand that bonds funds are not even bonds. They are a completely different product with market risks that the holders don't understand. If the Fed does continue to raise rates through 2023, there will be a mass liquidation of these bond funds. It makes absolutely no sense to hold funds that continues to lose money with no capital protection and yields less than a one month treasury.
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Old 09-13-2022, 05:27 PM   #430
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Yields are creeping up again, but for the bonds I watch still below the June peak. Getting close though.
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Old 09-15-2022, 07:43 AM   #431
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I thought this was a good presentation from Stan the Annuity Man, I am not sold on his presentation style, I find it a little condescending at times, but his points are well made.

This particular one subscribes to my and my close retirement friend's way of thinking: "Crossing the Retirement Finish Line: Shootin' It Straight with Stan"

I FF through the annoying bits.

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Old 09-15-2022, 11:15 PM   #432
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Looks like a pretty good new issue:

38150APC3
Security type Corporate
Issuer Goldman Sachs Group Inc
Maturity 09/30/2026
Coupon 5.000

Step up
09/30/2022 5.00
03/30/2025 6.00
03/30/2026 7.00

Of course various callable dates. Settles on 9/30 so time to watch rates for a while before buying.
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Old 09-22-2022, 03:49 PM   #433
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Looks like a pretty good new issue:

38150APC3
Security type Corporate
Issuer Goldman Sachs Group Inc
Maturity 09/30/2026
Coupon 5.000

Step up
09/30/2022 5.00
03/30/2025 6.00
03/30/2026 7.00

Of course various callable dates. Settles on 9/30 so time to watch rates for a while before buying.
Looking for investment grade bonds.. Tried to pull this up on Schwab but it does not come up..Anything more on this note or other good ones?
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Old 09-23-2022, 08:28 AM   #434
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Schwab has available CUSIP# 22553QLS4. It's a new issue Credit Suisse 2 year note paying 5%.
Anything wrong with this?
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Old 09-23-2022, 09:21 AM   #435
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Schwab has available CUSIP# 22553QLS4. It's a new issue Credit Suisse 2 year note paying 5%.
Anything wrong with this?
Nothing wrong with it as long as you think they will be able to pay off the note in 2 years.
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Old 09-23-2022, 09:28 AM   #436
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Nothing wrong with it as long as you think they will be able to pay off the note in 2 years.
Are they in trouble?
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Old 09-23-2022, 09:41 AM   #437
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Are they in trouble?
I left you links to their credit problems over a month ago in another (?) thread.
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Old 09-23-2022, 09:50 AM   #438
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Are they in trouble?
Not that I know of. I don't follow Credit Suisse. All banks are going to have problem if the yield curve continues to invert. They borrow short and lend long and right now borrowing short is expensive relative to lending long.

You have to remember something: If an investment looks too good to be true, it probably is.
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Old 09-23-2022, 10:12 AM   #439
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I left you links to their credit problems over a month ago in another (?) thread.
Yes, I remember you doing that.... obviously lawman doesn't.
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Old 09-23-2022, 10:46 AM   #440
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I left you links to their credit problems over a month ago in another (?) thread.
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Yes, I remember you doing that.... obviously lawman doesn't.
Here lately, I am getting a little gun-shy on risk.

I bought "CREDIT SUISSE AG LONDON BRANCH MTN, 4.4%, CUSIP 22553QH83", in late August, with a Moody's rating A2.

Should I try to sell this off?
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