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Old 04-06-2021, 07:08 AM   #261
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This one will not get reversed...I requested a bid, dealers bid on it for an hour. This was not the same as those which do get reversed - which, like phil1ben, I've had happen to me as well with munis. Further, as shown for the other bond, there was likewise a sale at a similar price. Dealer made the same error twice with two different bonds looking to get them both reversed? Unlikely.

I also had one similar to this one early last year. Call notice was posted after hours, first thing in the morning I requested a bid, bid came back obviously clueless about the call, I quickly took it. By end of the day, dealer that bought from me sold at a loss.

Both my bond, and the other are currently still being offered at 103.81 and 103.92. If they were looking for it to be reversed, no way they'd turn around and offer them for sale. They are simply clueless and hoping there are bigger fools who will buy them.
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Old 04-09-2021, 11:38 AM   #262
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So, as suspected, dealer found some bigger fools to take them...
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Old 04-09-2021, 01:45 PM   #263
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I had to look -- I bought a Calif bond yesterday. But it was for the SLO school district. 3.25% coupon with a ~2% YTW if called 8/2024.

I just put a small part of my fixed allocation into a 3-yr deferred annuity with 1.7% yield. As I've mentioned before, a bunch of bonds will come due via call/maturity this year. Bond funds are looking pretty sucky in the short term, and I don't see a lot of opportunity in the muni market at the moment. Maybe it'll pick up in the coming months -- if I were in a government body looking at some capital projects, I'd be moving now.

BTW, njhowie, it looks like our Alaska airport bonds took a little hit in the market yesterday. I was reading an Anchorage Daily News story this week that the state was expecting a $1 billion federal aid windfall. I wonder if that had an effect.

While the airport bond took a hit, my Altapointe (Ala.) Health System bond bounced in the other direction. A little victory -- I bought it below par several years ago and now it's trading at a 7% premium. Altapointe is biggest mental health provider in Alabama, so the state doesn't want it to go broke.
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Old 04-09-2021, 02:42 PM   #264
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I am finding acceptable deals here and there...similar to what I had been doing previously - going for bonds which have tiny (but positive) YTC short-term, but if not called, then excellent yield thereafter. My view is that if I can get a YTC higher than the equivalent dated CD, then there's no downside. Earlier in the week, I was able to pick up a 9% coupon with 8.23% YTM for 5.5 years with a call date this September with YTC of 0.77%. I can live with 0.77% for 5 months with the possibility of 9% thereafter. 9% they should certainly call. However, it is a small issue, so maybe not worth their time/expense to call. We'll see.

I was also able to pick up a pre-refunded issue earlier today with yield to redemption of 2.33% for 6 years. I'll take that one for no risk at this time. More than double the same maturity CD for equivalent risk.

On the Alaska bonds, as I theorized previously - I doubt we make it to end of the year with them not being called. They were good while they lasted.
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Old 04-09-2021, 02:48 PM   #265
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Quote:
Originally Posted by Mr._Graybeard View Post
While the airport bond took a hit, my Altapointe (Ala.) Health System bond bounced in the other direction. A little victory -- I bought it below par several years ago and now it's trading at a 7% premium. Altapointe is biggest mental health provider in Alabama, so the state doesn't want it to go broke.
Just a suggestion, since it's trading at a premium, just for the heck of it, request a bid and see what comes back. Calculate YTM and YTC based on the bid. You may find that the dealers bidding are nuts, like with my bond previously mentioned, and for the amount they are (over) paying, it may be worth your while to sell at the premium and put the money/profit somewhere else.
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Old 04-09-2021, 02:54 PM   #266
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Originally Posted by njhowie View Post
Just a suggestion, since it's trading at a premium, just for the heck of it, request a bid and see what comes back. Calculate YTM and YTC based on the bid. You may find that the dealers bidding are nuts, like with my bond previously mentioned, and for the amount they are (over) paying, it may be worth your while to sell at the premium and put the money/profit somewhere else.
Thanks for the idea. I'll calculate the total payout and see I can find a sucker -- er, buyer -- willing to make selling worth my while.
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Old 04-11-2021, 12:20 PM   #267
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Fidelity posted an article in their learning center a couple weeks ago regarding taxable munis. It's worth the read if you have a few minutes.

https://www.fidelity.com/learning-ce...special-report
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