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Old 08-04-2022, 07:15 PM   #161
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Did they hear Freedom?

Theres a bunch of shorter term bank offerings that look ok in this batch.
During the two weeks or so when Fidelity virtually shut down note offerings, the yields were about 1/2 percent higher. The current yields are okay compared to last year or even at the beginning of this year. Since the notes are callable in most cases after one year, you are better off buying the highest yielding BBB+ or A rated note with a duration no more than 5 years.
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Old 08-04-2022, 07:29 PM   #162
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Originally Posted by Freedom56 View Post
During the two weeks or so when Fidelity virtually shut down note offerings, the yields were about 1/2 percent higher. The current yields are okay compared to last year or even at the beginning of this year. Since the notes are callable in most cases after one year, you are better off buying the highest yielding BBB+ or A rated note with a duration no more than 5 years.
Ya I stay away from anything > 3 yrs out.
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Old 08-04-2022, 07:53 PM   #163
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Ya I stay away from anything > 3 yrs out.
I normally do, but I bought a pretty big chunk of 5 year TIPS during the last auction.
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Old 08-04-2022, 09:50 PM   #164
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Ya I stay away from anything > 3 yrs out.


Why? Just curious.
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Old 08-05-2022, 07:46 AM   #165
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The secondary markets should improve with another round of bond fund selling after this jobs report. High yield (BB and higher) and lower investment grade (BBB- and higher) should outperform high grade bonds moving forward. The economy is still strong so credit quality is not a concern. We can expect the Fed to keep raising rates to the end of the year pushing short term MM yields up to 3%.

https://www.atlantafed.org/cenfis/ma...bility-tracker
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Old 08-05-2022, 07:52 AM   #166
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Yes, Jpowell is going to need to be a lot more hawkish. Will we get an out of meeting rate increase?
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Old 08-05-2022, 08:14 AM   #167
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The secondary markets should improve with another round of bond fund selling after this jobs report. High yield (BB and higher) and lower investment grade (BBB- and higher) should outperform high grade bonds moving forward. The economy is still strong so credit quality is not a concern. We can expect the Fed to keep raising rates to the end of the year pushing short term MM yields up to 3%.

https://www.atlantafed.org/cenfis/ma...bility-tracker
The short end of the curve in lower grade investment quality bonds is getting interesting when you can get 5% plus for relatively short durations.
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Old 08-05-2022, 10:41 AM   #168
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The short end of the curve in lower grade investment quality bonds is getting interesting when you can get 5% plus for relatively short durations.
5%? I want to get at least 6.5-7% for lower investment grade notes with 2-3 year durations. I already picked up 5.75% Ally Financial 2025 notes at just about $98.24. I would expect a sharp sell-off of short/medium duration investment grade bond ETFs and funds as investors realize that money market yields are higher with zero risk to capital and 100% liquidity. Also funds do stupid things like drop their shortest duration notes and buy longer duration just to maintain their average duration. So you can get inflated yields from this distressed bond fund/ETF selling off one year notes into an inverted yield curve.
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Old 08-05-2022, 11:04 AM   #169
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Why? Just curious.
Just trying to save some dry powder, mainly.
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Old 08-05-2022, 11:37 AM   #170
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Keep plenty of dry powder for zero risk corporate notes like this one. Investors and funds do crazy things with notes one year to maturity.

https://finra-markets.morningstar.co...bol=BAC3710314
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Old 08-05-2022, 11:53 AM   #171
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Keep plenty of dry powder for zero risk corporate notes like this one. Investors and funds do crazy things with notes one year to maturity.

https://finra-markets.morningstar.co...bol=BAC3710314
So how can I get that? When I try to pull it up on Schwab it just comes up with all blanks and says it is not available.
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Old 08-05-2022, 12:01 PM   #172
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5%? I want to get at least 6.5-7% for lower investment grade notes with 2-3 year durations. I already picked up 5.75% Ally Financial 2025 notes at just about $98.24. I would expect a sharp sell-off of short/medium duration investment grade bond ETFs and funds as investors realize that money market yields are higher with zero risk to capital and 100% liquidity. Also funds do stupid things like drop their shortest duration notes and buy longer duration just to maintain their average duration. So you can get inflated yields from this distressed bond fund/ETF selling off one year notes into an inverted yield curve.
I bought some this morning at 9 months and 1 year close to 5%. I can get 6% if I go out 3 years. I am not looking to squeeze every last dime out of this stuff. I bought a bunch on the rate spike back in June. You can drive yourself nuts waiting for the right day that may never come. Good is sometimes good enough.
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Old 08-05-2022, 12:54 PM   #173
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So how can I get that? When I try to pull it up on Schwab it just comes up with all blanks and says it is not available.
If it's not in Schwab's inventory it will not show as available. Call the fixed income trading desk at Schwab and ask them to put a GTC (Good Till Cancelled) limit order on the CSUIP number for the dollar amount you want to buy (i.e. $10K, $15K, or what ever) also specify the minimum quantity (i.e. $1K) and the price (i.e. $99.80). Make sure you have the cash in your account to cover the trade. They will make this order available between trading desks.
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Old 08-05-2022, 01:00 PM   #174
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I bought some this morning at 9 months and 1 year close to 5%. I can get 6% if I go out 3 years. I am not looking to squeeze every last dime out of this stuff. I bought a bunch on the rate spike back in June. You can drive yourself nuts waiting for the right day that may never come. Good is sometimes good enough.
I think we are headed for the next round of panic bond fund/ETF selling especially short and medium duration investment grade bonds. Sooner or later the Bozoheads hold-outs will realize that their bond funds/ETFs are yielding less than money market funds and continue to decline in value and they will start bailing. This should create some nice opportunities. Also we are heading into tax loss selling season in the fourth quarter which should put additional incentives to head for the exit doors.
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Old 08-05-2022, 03:08 PM   #175
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If it's not in Schwab's inventory it will not show as available. Call the fixed income trading desk at Schwab and ask them to put a GTC (Good Till Cancelled) limit order on the CSUIP number for the dollar amount you want to buy (i.e. $10K, $15K, or what ever) also specify the minimum quantity (i.e. $1K) and the price (i.e. $99.80). Make sure you have the cash in your account to cover the trade. They will make this order available between trading desks.
First thing Monday! What would be a reasonable bid?
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Old 08-05-2022, 06:41 PM   #176
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First thing Monday! What would be a reasonable bid?
The recent trade history is shown below:

https://finra-markets.morningstar.co...08%2F05%2F2022

As you can see it does not trade that often and in relatively low dollar value trades. Don't expect to snag large dollar amounts. $4K-10K lots are reasonable expectations for this particular note. Also if you buy before the 15th of August, you have to pay the buyer the accrued interest for the last six months but on the 15th t of August the interest is payed back to you. I would say that a bid of $99.70 is reasonable.
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Old 08-05-2022, 07:34 PM   #177
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The recent trade history is shown below:

https://finra-markets.morningstar.co...08%2F05%2F2022

As you can see it does not trade that often and in relatively low dollar value trades. Don't expect to snag large dollar amounts. $4K-10K lots are reasonable expectations for this particular note. Also if you buy before the 15th of August, you have to pay the buyer the accrued interest for the last six months but on the 15th t of August the interest is payed back to you. I would say that a bid of $99.70 is reasonable.

Thanks!!
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Old 08-06-2022, 05:09 PM   #178
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Freedom56 - How are you able to find a note such as the Bank of America one. When I search on both Fidelity and Vanguard it does not come up. But when I search by the cusip on both platforms the note appears. Is there some other search engine that you use to find interesting notes such as this one. Thanks for all of the information that you share.
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Old 08-06-2022, 08:52 PM   #179
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Try this link. All bond trades are tracked by FINRA.

https://finra-markets.morningstar.com/BondCenter/

Select the "search" tab.
Look for "Advanced Search" and click on "show"

Then fill out the information as follows:

Under "Issuer / Bond Type" , select Corporate for "sub-product type"

Under "Maturity Date" select 8/1/2023 and 8/31/2023 (looking for one year maturities)

Under "Ratings and Credit"

For investment grade select Baa3 to Aaa for Moody's Rating and BBB- to AAA for S&P Rating.

Under "Trade Parameters"

Set the dates if you want to limit the search to recently traded notes.

Then click "Show Results" and agree to the terms

You will see the results and then sort the results by "yield" by clicking on yield twice to get descending yield.

The Bank of America note will appear near the top of the descending sort.

You can play around with the search parameters as you want.
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Old 08-06-2022, 10:21 PM   #180
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Can't thank you enough for those instructions. Worked fine. Will be very useful in the future.
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