Muni Bond (and Muni Bond Fund) Discussion

[COcheesehead]

Starting to see some 4%+ YTMs in my state with reasonable durations. YTCs over CD rates. I have a huge chunk of bonds maturing in the next 6-12 months. I hope things continue to improve for reinvesting these funds. I am nibbling now.

 

[Mr._Graybeard]

Just picked up 28 months for 3.5% YTM, not callable.

Nice. Most of the offers I see are in the low 3s but going out five years or more.

 

[njhowie]

Nice. Most of the offers I see are in the low 3s but going out five years or more.

There are still 20 of them available. They are taxable, but far outpace equivalent maturity CDs. 64990G3C4

 

[Mr._Graybeard]

I just popped for another Illinois GO. 4% coupon, 3.7% YTW, call 11/2029. I may have filled my appetite for Illinois GOs, this one is for $50K.

 

[njhowie]

I just popped for another Illinois GO. 4% coupon, 3.7% YTW, call 11/2029. I may have filled my appetite for Illinois GOs, this one is for $50K.

Good job. I am noticing the yields are moving higher very slowly. I have call/maturity coming in two weeks so will have more money to redeploy then. Been getting bargain pricing on some bank preferreds and exchange traded debt - up in the 7.x% area the past couple days.

 

[perinova]

I purchased these right before the close today.

Insured, Fed/CA tax free

9/1/2027 YTM=3.35%
9/1/2024 YTC=1.65%

https://emma.msrb.org/Security/Details/?id=75212CAP4

If interested, Fidelity had 5 more of them at the close.

This sparked my curiosity and I looked at the Fidelity site.
I haven't purchased bonds directly before and I am actually confused about the Ask price on the table. Is it actually 10% of the actual price? For example: Ask price = 100.17 means the real price is $1001.70 ?

 

[COcheesehead]

This sparked my curiosity and I looked at the Fidelity site.
I haven't purchased bonds directly before and I am actually confused about the Ask price on the table. Is it actually 10% of the actual price? For example: Ask price = 100.17 means the real price is $1001.70 ?

I take it a step further to really understand my all in cost. I put the number of bonds I want to purchase into an order and hit preview. The ticket will show you the commission, accrued interest and the ask price with your actual yield which is different than what is displayed in the screen tool.

 

[perinova]

I take it a step further to really understand my all in cost. I put the number of bonds I want to purchase into an order and hit preview. The ticket will show you the commission, accrued interest and the ask price with your actual yield which is different than what is displayed in the screen tool.

Thanks. I wanted to make sure everything was right...
I had actually put some money in my account for a specific trade and when I went to buy it I only had 10pct of the required amount :

 

[COcheesehead]

Thanks. I wanted to make sure everything was right...
I had actually put some money in my account for a specific trade and when I went to buy it I only had 10pct of the required amount :

Yes, your price is actually 10+ times the ask.

Here is a good place to start.

https://fixedincome.fidelity.com/ftgw/fi/FIUnderstandingBonds?sid=5

 

[njhowie]

New EMMA Website

MSRB/EMMA opened up their new website for evaluation purposes. It looks interesting. I just started browsing around. You have to create a new login:

https://emmalabs.msrb.org

They also require setting up 2FA for the login...not that I understand why.

 

[disneysteve]

They also require setting up 2FA for the login...not that I understand why.

Many authorities are recommending companies go to 2FA to fend off Russian cyberattacks. As much of a pain as it is, we’re probably going to see more and more of it.

 

[njhowie]

Secondary market CD purchase 2.9% for 6 years 5 months - not callable.

Ask was 104.689, there was a bid for 103.699, I bid 104 and dealer took it. Very rare that I can bid on a CD and get it.

 

[aja8888]

MSRB/EMMA opened up their new website for evaluation purposes. It looks interesting. I just started browsing around. You have to create a new login:

https://emmalabs.msrb.org

They also require setting up 2FA for the login...not that I understand why.

Just curious before I take the time to sign up, what is the emma site used for?

 

[njhowie]

Just curious before I take the time to sign up, what is the emma site used for?

Everything about municipal bonds - all filings, all trades. New site provides similar query capabilities for going through the filings as old one, but a slightly different interface. More data and transparency about market activity is available.

 

[aja8888]

Everything about municipal bonds - all filings, all trades. New site provides similar query capabilities for going through the filings as old one, but a slightly different interface. More data and transparency about market activity is available.

Thanks, sounds good.

 

[njhowie]

That bond may hold up to maturity. I imagine we'll see fewer calls as interest trates rise.

I'm pretty sure it will be called, only because they've given advance notice/warning:
https://emma.msrb.org/P21535945-P21187220-P21605178.pdf

So you may be right considering how quickly rates have spiked higher.

The issuer has their refund offering ready to go for May 3 and upon offering will defease my bonds. However, in reviewing the offering statement, there is no way they will pull it off for the yields they are offering.

PNC has agreed to purchase the bonds...but will they follow through at the agreed upon yields considering they haven't been issued yet?

https://emma.msrb.org/P11566959-P11209715-P11629607.pdf

 

[njhowie]

Just bought:

5-year pre-re 3.04%
1-year Treasury 1.793%

 

[COcheesehead]

Secondary market CD purchase 2.9% for 6 years 5 months - not callable.

Ask was 104.689, there was a bid for 103.699, I bid 104 and dealer took it. Very rare that I can bid on a CD and get it.

You are the king of the limit order. I have yet to have one fill on thinly traded assets.

 

[njhowie]

You are the king of the limit order. I have yet to have one fill on thinly traded assets.

More luck than anything else. Place lots of bids, bound to have periodic successes.

But thanks for the title - I'll take it.

 

[COcheesehead]

More luck than anything else. Place lots of bids, bound to have periodic successes.

But thanks for the title - I'll take it.

You keep me motivated to at least keep trying. I’ll let you all know if I get a fill.

 

[Mr._Graybeard]

Some 4% coupon O'Hare bonds are up for sale at 102.175 -- I just bought 15 of a 50-bond offering. CUSIP 167593D41

 

[COcheesehead]

I am seeing a few more 4%+ yielding bonds for my state too. I just wonder when I’ll see some 5% yields.

 

[njhowie]

Picking up 1 to 3.9 year treasuries for mom this morning. 1.957% - 2.743%

Will continue nibbling the short-term maturities as yields push higher.

 

[njhowie]

I believe we are nearing the day when we get that liquidity event where all h*ll breaks loose and the bond market goes into a panic.

 

[COcheesehead]

Funny you should mention that. My cash pile is pretty large these days. LOL. Need to go shopping for sale items.