njhowie
Thinks s/he gets paid by the post
- Joined
- Mar 11, 2012
- Messages
- 3,931
Which brings me to a question -- how much bargaining power would I bring to that kind of environment? I've settled a few buys with bids below the asking price, but it's usually been a matter of chiseling a basis point or two, maybe enough to cover the markup. I'm tempted to really lowball some of these unloved offerings.
There's no harm in trying. However, if you bid too low, then the system will block you and give the range that your bid must fall within. I don't understand that, and I complained to Fidelity about it, with a couple other issues with their handling of muni orders. I think the highest chance for success is to pull up the trade history and see when the dealer picked up the bonds - and aim for those that have been sitting there for the longest period, as there will be more incentive to get rid of them. Also, I believe there's also better chances if you do it close to 5PM, and especially 5PM on a Friday or before a holiday.
A while back, I figured a flaw in their logic - even though it wouldn't let you go too low, if you placed a bid within the range, it then reset that valid bid range based on the low bid. Then you could place another bid even lower, below the original range and cancel the original bid. You were able to do it multiple times taking the bid as low as you wanted. I think they've plugged that hole as I remember trying it not long ago, and it was then retaining the original valid bid range. I may try again just for the heck of it.