Corporate and Agency GSE Bond DEALS and NEW ISSUES

[calmloki]

Per call with the Fidelity bond rep this morning it is just as it says: a repayment of a portion of the principal amount of the Agerncy bond we purchased. I'll happily keep getting 6.25% on the remainder till the next call date in 3 months, and who knows - maybe past then. Lauren did help me get set up to receive any advance notice Fidelity gets on this sort of redemption activity in the future. My bad as far as not having the right choices made in the settings areas.

No idea how the redemption was apportioned betwixt the various Agency purchasers. Be interested if others show the same percentage redemption or whether the Agency did some complicated seniority/color of hair/gotta math degree and gonna use it algorithm to apportion the redemption.

 

[Spock]

Per call with the Fidelity bond rep this morning it is just as it says: a repayment of a portion of the principal amount of the Agerncy bond we purchased. I'll happily keep getting 6.25% on the remainder till the next call date in 3 months, and who knows - maybe past then. Lauren did help me get set up to receive any advance notice Fidelity gets on this sort of redemption activity in the future. My bad as far as not having the right choices made in the settings areas.

No idea how the redemption was apportioned betwixt the various Agency purchasers. Be interested if others show the same percentage redemption or whether the Agency did some complicated seniority/color of hair/gotta math degree and gonna use it algorithm to apportion the redemption.

I got one of those partial redemptions on a bond I was managing for my Dad. It totally screwed up the accounting as (IIRC) the holding still showed the original number of bonds but at a new reduced cost basis. Called fidelity and the rep said it'll straighten out eventually. Never did. Bond was fully called a few months later and finally got it out of my inventory. The math worked in the final accounting, but if you tried to take current price time number of "shares" it thru everything off.

 

[Born2Fish]

What do you think about this offer at Fidelity?

CUSIP 78014RA34

ROYAL BK CDA SER K MTN​

5.10000% 05/16/2035

 

[YellowSubmarine]

I got one of those partial redemptions on a bond I was managing for my Dad. It totally screwed up the accounting as (IIRC) the holding still showed the original number of bonds but at a new reduced cost basis. Called fidelity and the rep said it'll straighten out eventually. Never did. Bond was fully called a few months later and finally got it out of my inventory. The math worked in the final accounting, but if you tried to take current price time number of "shares" it thru everything off.

Same here, I sold it. It's confusing the way it's carried on the books. More work than necessary, it's sold..

 

[pb4uski]

I agree, and Fidelity actually sent two messages, one enumerating interest payback and the other listing principal repayment. It was just odd to me that they didn't close out the whole amount I had purchased. Maybe the agency had 21.73913% redemption and split that amount between all investors. Tomorrow's call will tell.

+1 That was the percentage of my redemption too.

 

[pb4uski]

Same here, I sold it. It's confusing the way it's carried on the books. More work than necessary, it's sold..

Nothing confusing at all.. 21.73912% was called at 100. Easy peasy.

 

[Tacitus]

Bank of Montreal matures 7/29/25, bonds 4.9%, nice to park money imo, better than mm.

 

[erkevin]

Serious impulse buy: had a $100k CD mature in my IRA and I bought Deutsche Bank #25161FN95 on the Schwab secondary market. 9 years 11 months remaining, plus 4 years of call protection (that was the deal-maker) at 5.55%. YTW is 5.518%. Annual payer. This bond takes me to about the beginning of RMDs

 

[COcheesehead]

The agency bonds are all getting downgraded this morning. Still AA1 for Moodys. AA+ S&P

 

[Spock]

The agency bonds are all getting downgraded this morning. Still AA1 for Moodys. AA+ S&P

I was curious why T's were showing AA1 while GSE where still AAA. Guess things are slow (except for HFTs).

 

[imbatman]

yeah yeah "what happens if they hold them until 2055 and interest rates are 25%"......I get it........but....

3130B6K54 (FHLB so state/local exempt) 6.25%...call protected 3 months (Aug 21), issued in 2 days, 30 year

 

[imbatman]

Just posting because this thread has kind of died and I haven't really ever seen an AA2+ rated Corporate Bond and was surprised to see some 20-yr from National Bank of Canada today on Fido secondary yielding 6.08-6.2% at current ask with first calls from April to June 2026

63305MFX4
63305MLV1
63305MHG9

 

[Montecfo]

yeah yeah "what happens if they hold them until 2055 and interest rates are 25%"......I get it........but....

3130B6K54 (FHLB so state/local exempt) 6.25%...call protected 3 months (Aug 21), issued in 2 days, 30 year

Do you have any parameters on comparing the term to the protected period?

I don't buy callables but if I did I would probably not want to go more than 2x the protection period.

Otherwise it is a great deal of rate risk and don't let anyone tell you that "holding to maturity" addresses it. It doesn't.

 

[Koolau]

Just posting because this thread has kind of died and I haven't really ever seen an AA2+ rated Corporate Bond and was surprised to see some 20-yr from National Bank of Canada today on Fido secondary yielding 6.08-6.2% at current ask with first calls from April to June 2026

63305MFX4
63305MLV1
63305MHG9

Callable? When?

 

[COcheesehead]

Callable? When?

 

[Koolau]

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