Freedom56
Thinks s/he gets paid by the post
What qualifies as Jumbo? 100k and above?
Yes
What qualifies as Jumbo? 100k and above?
Do you have a ballpark # on how much more? Where is the decimal point?Even better, if you are buying jumbo CDs, you can call the Fidelity bond desk and get a discount on those CDs for an even better yield.
Do you have a ballpark # on how much more? Where is the decimal point?
.x or .0x... I'd try to make the call for .x but not .0x.
I got 100K of the the 18 month Zion 5.4% for $995 instead of $1000 for a total of $99500. The YTM is then 5.75% for 18 months.
It's hard to turn down the extra dollars in an 18 month CDs at 5.4% as compared to 4+% CDs in the 4 to 5 year area. A bird in the hand....
Just trying to read this thread is almost like work. Luckily I've used up my cash for now, so I don't have to do the follow-up work of buying the investments. Y'all are wearing me out.
I hope you got some 4-5 yr noncallable CDs when they went over 5% a couple weeks ago. The market and bond yields are getting squeezed to where the yield is back at the very short end. Reinvestment risk rears its ugly head there.
Let me know how you make out on that.For that I'll try it with Schwab.
Fidelity has a 3 year non-callable CD at 5.1%
Strange that I can find this CD by entering the CUSIP, but otherwise it does not show up on Fidelity's listings. I must be missing something.
Strange that I can find this CD by entering the CUSIP, but otherwise it does not show up on Fidelity's listings. I must be missing something.
Thanks Mulligan and COcheesehead.
And for both of these, I may be able to call the bond desk at Fidelity and squeak out an extra couple of basis points? (Freedom mentioned this I think)
Fidelity has a 3 year non-callable CD at 5.1% - DSN3N4768
I couldnt help myself and took another small bite of the 5 year 5% noncallable one myself. Who said conservative yield chasing wasnt exciting. One day the multi year Treasuries were paying more than the CDs, and now they are not even within ear shout of CDs.
Wall Street is full of morons. One of the safest asset classes, CDs, are yielding more than treasuries, and high grade corporate bonds. How long can that last?
Even worse, the steep inversion in the yield curve is creating and even more dangerous situation for bond index funds as they sell short duration at losses and buy longer duration at low coupons.
You know Freedom, an easy way to lock in some cap gains and yet maintain the present yield would be for people who recently bought treasuries at 5% to sell them. And then rotate into the 5% CDs. Assuming tax situation or account held in is applicable.
You know Freedom, an easy way to lock in some cap gains and yet maintain the present yield would be for people who recently bought treasuries at 5% to sell them. And then rotate into the 5% CDs. Assuming tax situation or account held in is applicable.
This one is now sold out.