olyveoil
Recycles dryer sheets
Any takers on F Bonds?
34540TF98
6.25% Coupon
4 yr. maturity
callable on Dec 24
34540TF98
6.25% Coupon
4 yr. maturity
callable on Dec 24
Any takers on F Bonds?
34540TF98
6.25% Coupon
4 yr. maturity
callable on Dec 24
Disclaimer: I'm not saying Ford is going bankrupt, in fact I own the common.
To put this is perspective, in 2008 I bought a Ford preferred with a 7.5% coupon for 21 cents on the dollar. Yes, it had a 35.7% yield.
It was eventually redeemed a few years later at par. My point is that if things get bad (like great recession bad), the yields on lower rated/risky debt will be much, much higher. (Also note that the actual Ford bonds weren't at 35% as they were higher on the debt pecking order.)
For me, fixed is a place where (for the most part), I want to err on the side of safety and not a place to stretch for yield. (My exceptions to this is a small handful of preferred issues). I have equity investments to go for the gusto. The yield on Ford common is 4.86% as of end of today, and was over 6% about a month or two ago.
Shocked to see but new on Fido this afternoon:
3133EPS48
FFCB
6.32%
Maturity: 20-Year
First Call: 3-months (March 28)
Issue Date: December 28
I definitely picked up to replace called versions paying out the day prior
I like it. I have made some good money with WDI. Hard to beat 11%-12% dividends with capital appreciation. It’s has jumped about 3%+ in just the last two days.
Last week one of my FFCB bonds (6.33%) was called. Today another FFCB bond (6.32%) call was announced. I guess my dry powder will be replenished.
And a new FHLB bond was offered today at the same rate if you want to replace it. See my other post.My 6.05% FHLMC agency bond just got called. It was fun while it lasted.
This one is available at Schwab today.
FHLB 6.05% 01/26/2044 Callable
CUSIP: 3130AYN93
Coupon Rate: 6.05%
Minimum Investment: $10,000
Maturity Date: 01/26/2044
Call Provision: Callable in whole or part Daily beginning 07/26/2024 with 5 days notice.
If you are looking to park money for 6 months this might be a good choice as it is likely to be called in late July.
If it doesn't get called I'll be happy to take 6.05% for the next 20 years.This will most likely not be called in July. This is the second worst rate issued for this term over the past year. There are plenty of mid-6 rate bonds for this term that are not called. If you purchase this one, you are in for the longer haul and are subject to lots of interest rate volatility.
Goldman Sachs 6.75% 10/2027 bond was just called - 38150APM1