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10-25-2022, 12:03 PM
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#961
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,012
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Quote:
Originally Posted by Freedom56
Remember the rule of 72 in fixed income investing. At 6.75% it will take 72/6.75 or 10.67 years to double your money. This assumes you re-invest the money at the same and higher yields and your capital is returned. It works well in tax sheltered accounts where your money continues to grow without tax liability until you withdraw.
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I'm trying to make most bond purchases in IRA/Roth accounts.
Did do a goof and purchase a 5 year TIP in the regular account, so will have more fun doing taxes for the next 5 years.
I'm sure I do small potatoes compared to most folks, as the largest single purchase of interest bearing things has been $20K in a Treasury.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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10-25-2022, 01:21 PM
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#962
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,250
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Love this thread and learning so much. I appreciate Freedom and all the other helpful posters on this thread. Just bought the 3 year Goldman Sachs and 5 year Bank of America.
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10-25-2022, 01:44 PM
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#963
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Posts: 11,701
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Quote:
Originally Posted by Sunset
I'm trying to make most bond purchases in IRA/Roth accounts.
Did do a goof and purchase a 5 year TIP in the regular account, so will have more fun doing taxes for the next 5 years.
I'm sure I do small potatoes compared to most folks, as the largest single purchase of interest bearing things has been $20K in a Treasury.
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Don't panic. It's just a 1099-OID and not a big deal. Just plug into your favorite tax program. It is as easy as handling 1099-INT. You just have to remember you have another form, that's all.
__________________
Retired Class of 2018
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10-25-2022, 03:27 PM
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#964
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Posts: 35,712
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Preparing the tax return is easy. Writing the check is hard.
__________________
"Old age is the most unexpected of all things that happen to a man" -- Leon Trotsky (1879-1940)
"Those Who Can Make You Believe Absurdities Can Make You Commit Atrocities" - Voltaire (1694-1778)
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10-25-2022, 03:46 PM
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#965
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Quote:
Originally Posted by Letj
Love this thread and learning so much. I appreciate Freedom and all the other helpful posters on this thread. Just bought the 3 year Goldman Sachs and 5 year Bank of America.
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I'm buying the GS 5 year and the BOA 5 year notes and also the TD 5 year notes. For some reason investment advisors will have you believe that buying GS and BOA stock is okay but buying their bonds is risky. In reality the opposite is true. Bond interest payments and return of capital at maturity or call are contractual obligations. Companies have no obligation to pay dividends and there is no par value for stocks.
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10-25-2022, 04:11 PM
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#966
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Dryer sheet wannabe
Join Date: Oct 2022
Location: Los Angeles
Posts: 14
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First post here. Appreciating all the sage advise here, esp Freedom, thank you.
This bond says the note will price on Oct 26, is there a reason to wait until then to buy then or is Oct 25 viable for the 6.35% at 100%?
Quote:
Originally Posted by Freedom56
New 5 year note listed at TDA at 6.35%
***Bank Of America Corp. Callable Fixed Rate Notes
CUSIP:
06048WZ86
Final Prospectus
Bond Details
Offering Period
10/21/2022 - 10/26/2022
Maturity Range
2027-2027
Tax Status
Taxable
Ratings
A2/A-
Callable
Maturity
10/28/2027
Coupon & Yield
Coupon
6.350
Pay Months
N/A
Current Yield
N/A
Frequency
Semi-Annually
First Coupon
04/28/2023
Yield to Maturity
6.350
Yield to Worst
N/A
Offer & Pricing Information
Quantity
Price
100.000
Principal
$1,000.00
Min. Qty
Settlement Date
10/28/2022
Accrued Interest
$0.00
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10-25-2022, 04:27 PM
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#967
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,546
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What about Floaters?
1 Bk Of America Corp
Moody's Outlook Stable | Conditional Call | Financials | Subordinated | BAC | Floating: 3M LIBOR + 65BP | Quarterly Reset | Quarterly Pay FLT 12/01/2026 94.468
92 6.566
Baa1
4 year subordinated debt resets quarterly, LIBOR+65BP
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10-25-2022, 05:21 PM
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#968
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Quote:
Originally Posted by soylentgreen
First post here. Appreciating all the sage advise here, esp Freedom, thank you.
This bond says the note will price on Oct 26, is there a reason to wait until then to buy then or is Oct 25 viable for the 6.35% at 100%?
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it's priced and good to go. Tomorrow is the deadline.
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10-25-2022, 05:29 PM
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#969
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Quote:
Originally Posted by Montecfo
1 Bk Of America Corp
Moody's Outlook Stable | Conditional Call | Financials | Subordinated | BAC | Floating: 3M LIBOR + 65BP | Quarterly Reset | Quarterly Pay FLT 12/01/2026 94.468
92 6.566
Baa1
4 year subordinated debt resets quarterly, LIBOR+65BP
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The 3 month LIBOR will drop off as rates stabilize and will drop first when the Fed cut rates. You have to believe that the Fed will continue to raise rates beyond the 4.8% target to buy this floater.
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10-25-2022, 09:34 PM
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#970
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,250
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Quote:
Originally Posted by Freedom56
I'm buying the GS 5 year and the BOA 5 year notes and also the TD 5 year notes. For some reason investment advisors will have you believe that buying GS and BOA stock is okay but buying their bonds is risky. In reality the opposite is true. Bond interest payments and return of capital at maturity or call are contractual obligations. Companies have no obligation to pay dividends and there is no par value for stocks.
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How do I find the TD bank 5 year note? A search of FINRA came up with nothing.
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10-25-2022, 11:27 PM
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#971
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Recycles dryer sheets
Join Date: Aug 2019
Posts: 319
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Quote:
Originally Posted by Letj
How do I find the TD bank 5 year note? A search of FINRA came up with nothing.
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This it ?
89114X3W1
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10-25-2022, 11:33 PM
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#972
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Quote:
Originally Posted by Letj
How do I find the TD bank 5 year note? A search of FINRA came up with nothing.
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It is at TDA not Fidelity. In fact, TDA as usual, has far more selection of new issues including several from from JP Morgan,
The Toronto-Dominion Bank (“TD” or “we”) is offering the Callable Fixed Rate Notes due October 31, 2027 (the “Notes”) described below.
CUSIP / ISIN: 89114X4J9 / US89114X4J92
The Notes will accrue interest at a fixed rate of 6.25% per annum from and including the Issue Date to but excluding the Maturity Date.
TD will pay interest on the Notes on the last calendar day of each January, April, July and October (each, an “Interest Payment Date”),
commencing on January 31, 2023 and ending on the Maturity Date or Optional Call Date (if applicable).
TD may, at its option, elect to redeem the Notes in whole, but not in part, on the last calendar day of each January, April, July and October (each,
an “Optional Call Date”), upon five Business Days’ prior written notice, commencing on October 31, 2023 and ending on the Interest Payment
Date immediately preceding the Maturity Date.
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We are entering a "Golden Period" for fixed income investing
10-26-2022, 06:10 AM
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#973
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,250
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We are entering a "Golden Period" for fixed income investing
Quote:
Originally Posted by Freedom56
It is at TDA not Fidelity. In fact, TDA as usual, has far more selection of new issues including several from from JP Morgan,
The Toronto-Dominion Bank (“TD” or “we”) is offering the Callable Fixed Rate Notes due October 31, 2027 (the “Notes”) described below.
CUSIP / ISIN: 89114X4J9 / US89114X4J92
The Notes will accrue interest at a fixed rate of 6.25% per annum from and including the Issue Date to but excluding the Maturity Date.
TD will pay interest on the Notes on the last calendar day of each January, April, July and October (each, an “Interest Payment Date”),
commencing on January 31, 2023 and ending on the Maturity Date or Optional Call Date (if applicable).
TD may, at its option, elect to redeem the Notes in whole, but not in part, on the last calendar day of each January, April, July and October (each,
an “Optional Call Date”), upon five Business Days’ prior written notice, commencing on October 31, 2023 and ending on the Interest Payment
Date immediately preceding the Maturity Date.
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This is very helpful. Explains why I couldn’t find it on Fidelity’s website. I hate to have to open another account but Fidelity told me I have to go through their bond trading desk if they don’t have it on their website and it would have to be a large enough buy to justify the purchase.
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10-26-2022, 12:22 PM
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#974
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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All corporate notes with coupons 6% and higher have been sold out at TDA as bond yields have pulled back and the spreads have narrowed. I think we can count on Powell to say something next week to spook the markets again so we can get those 6%+ yields again. Hopefully my orders for GS and BOA will execute tomorrow. The Wells Fargo 6% 3 year note is pending execution. The secondary markets are littered with a lot of low coupon notes from banks and other companies. High grade notes from technology companies (A rated) are trading with very narrow spreads to treasuries and not worth buying at this point. It appears that fixed income investors are crowding into the stronger sectors in fixed income and bidding those securities up. In any case, I have no plans to buy any more new issues until I see a "6" or higher as the leading digit. I'm pretty confident that we will see better yields this tax loss selling season.
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10-26-2022, 12:26 PM
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#975
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Thinks s/he gets paid by the post
Join Date: Aug 2012
Posts: 1,824
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Quote:
Originally Posted by Freedom56
All corporate notes with coupons 6% and higher have been sold out at TDA as bond yields have pulled back and the spreads have narrowed. I think we can count on Powell to say something next week to spook the markets again so we can get those 6%+ yields again. Hopefully my orders for GS and BOA will execute tomorrow. The Wells Fargo 6% 3 year note is pending execution. The secondary markets are littered with a lot of low coupon notes from banks and other companies. High grade notes from technology companies (A rated) are trading with very narrow spreads to treasuries and not worth buying at this point. It appears that fixed income investors are crowding into the stronger sectors in fixed income and bidding those securities up. In any case, I have no plans to buy any more new issues until I see a "6" or higher as the leading digit. I'm pretty confident that we will see better yields this tax loss selling season.
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Thanks for the update. Appreciate it. I have been following the yields closely myself. the 10 yr has pulled back from 4.3% just last Friday to around 4.02 today.
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10-26-2022, 12:48 PM
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#976
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Thinks s/he gets paid by the post
Join Date: Jul 2008
Location: Weatherford, Texas
Posts: 1,213
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Quote:
Originally Posted by Freedom56
All corporate notes with coupons 6% and higher have been sold out at TDA as bond yields have pulled back and the spreads have narrowed. I think we can count on Powell to say something next week to spook the markets again so we can get those 6%+ yields again. Hopefully my orders for GS and BOA will execute tomorrow. The Wells Fargo 6% 3 year note is pending execution. The secondary markets are littered with a lot of low coupon notes from banks and other companies. High grade notes from technology companies (A rated) are trading with very narrow spreads to treasuries and not worth buying at this point. It appears that fixed income investors are crowding into the stronger sectors in fixed income and bidding those securities up. In any case, I have no plans to buy any more new issues until I see a "6" or higher as the leading digit. I'm pretty confident that we will see better yields this tax loss selling season.
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Thanks...I'm always interested in your thoughts..
__________________
Life is good. Then you die.
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10-26-2022, 01:41 PM
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#977
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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The Bank of Canada signaled today that it is nearing the end of its interest-rate hiking campaign by raising 50 basis points instead of the expected 75 basis points.
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10-26-2022, 01:44 PM
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#978
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,012
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Canada just increased their official rate by 0.5 percentage. Lower than the expected 0.75 percent.
Perhaps this is feeding the thoughts by some of a slower increase coming.
Last thing Canadian need is a lower dollar value. It's already just 73 cents USD.
Cross posted as slow on the phone
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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10-26-2022, 02:13 PM
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#979
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Corporate balance sheets in general (excluding the money losing sectors) are healthy as they have refinanced their debt at historically low rates at the expense of investors who bought funds who in turn bought all those low coupon securities. Make no mistake, investors that buy individual bonds did not bid up issues to YTMs below 0.5%. Passive funds did that. The market has to look ahead to the reality of refinancing of that debt at much higher coupons. Those corporations that issued debt to buy back stock are in for a lot of trouble if they have to re-finance at higher coupons.
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We are entering a "Golden Period" for fixed income investing
10-26-2022, 06:22 PM
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#980
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2009
Posts: 9,343
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We are entering a "Golden Period" for fixed income investing
Quote:
Originally Posted by Freedom56
The Bank of Canada signaled today that it is nearing the end of its interest-rate hiking campaign by raising 50 basis points instead of the expected 75 basis points.
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Freedom, I am not quite taking it the way the market is front loading info. Here is exactly what Bank of Canada said in paragraph below….The market creates its own agenda. BoC never said 75 or 50 to begin with. But that being said, I certainly believe the heavy lifting is behind though.
“Given elevated inflation and inflation expectations, as well as ongoing demand pressures in the economy, the Governing Council expects that the policy interest rate will need to rise further. Future rate increases will be influenced by our assessments of how tighter monetary policy is working to slow demand, how supply challenges are resolving, and how inflation and inflation expectations are responding. Quantitative tightening is complementing increases in the policy rate. We are resolute in our commitment to restore price stability for Canadians and will continue to take action as required to achieve the 2% inflation target”.
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