Corporate and Agency GSE Bond DEALS and NEW ISSUES

[COcheesehead]

Where at? Definitely not on Fido or ML in new issue or secondary..........

I am looking at it right now on Fido 3130AWNL0

 

[imbatman]

I am looking at it right now on Fido 3130AWNL0

Right but with a call in Jan 2024, so 6-months out. At this point in the rate hike game, I am looking for stuff with a little more legroom.

 

[COcheesehead]

Right but with a call in Jan 2024, so 6-months out. At this point in the rate hike game, I am looking for stuff with a little more legroom.

Don’t buy agencies then.

 

[imbatman]

My point was only it will never mature in 2033.

 

[COcheesehead]

I’ve posted this before in the forum elsewhere. In my opinion for a ladder to be useful to me it needs to provide good income, but also reliable income. Agency bonds fall down on the reliable part unless you buy below market coupons on the secondary market, but then you give up current income for late in maturity NAV gain.
I’ve snagged some nice long call/no call taxable and tax free muni bonds with coupons in the 5.5% - 6.6% range. That provides dependable, quality income for us.
Yes, I own some agency bonds with coupons in the high fives to mid sixes. I expect they all will be called, but if not, those numbers are fine with me too.

 

[gauss]

Thank you for the detailed response. This is exactly the info I was looking for.

Thank you for your kind feedback on this.

-gauss

 

[Montecfo]

Right but with a call in Jan 2024, so 6-months out. At this point in the rate hike game, I am looking for stuff with a little more legroom.

I agree on legroom. But can straddle the issue.

You can look at what I call "cushion bonds". Look in secondary market for bonds trading at discount.

Unlikely to be called due to below market coupon. If they do get called you get a premium.

 

[Healthy Lifestyle]

Hi @Healthy Lifestyle - that is a perfectly fine bond depending on your use case. Certainly high credit quality and potentially useful for avoiding state/ local taxes. Basically depends on how you feel about 5.82% and it being callable in 2-years (the 15-year part isn't super significant IMO).

It is good but not really motivating me to buy, so I am keeping my powder dry for rates to go up or some more new issues (right now, Fido literally has 2 new issue agencies and 1 new issue corporate available - not sure where all the new issues went??).

Alternatively, if you want to buy now, you could consider 3133EPQK4 (same FFCB but 6.05% callable in 1-year). All about how long you want at what rate.

I was leaning toward the 2-year callable option to lock in the 5.82% yield but am not sure if shorter term would be the way to go. Also hesitated when I saw 2038 date.
Maybe a one year callable agency bond with a decent rate will be considered now.

Thanks all for your thoughtful comments.

 

[pb4uski]

My point was only it will never mature in 2033.

And just how does one acquire such information with such certainty?

IOW never say never.

 

[imbatman]

You can look at what I call "cushion bonds". Look in secondary market for bonds trading at discount.

Unlikely to be called due to below market coupon. If they do get called you get a premium.

Great tip / reminder, yes I do this too and have a saved search for it but haven't seen any agencies yielding over 5.5% (of any coupon amount) with call dates past Jan 2025 in Fido for the last couple of weeks.

 

[Montecfo]

Yes it is fishing. Rates have dropped.

But larger point was you don't only have a choice between lower yielding non-callable issues and highly yielding issues that are virtually certain to be called.

 

[Gotadimple]

With callable bonds, the rate is higher because you are risking losing out on 'years' of income at the stated rate. But no where, no how is a callable date a guarantee that the bond will be called. Could be quite a while. So you pays your money and your take the risk.

 

[imbatman]

89114XAW3 TD Ameritrade (A1/A) 4-year (BUT 1-year callable) 6.15% with Quarterly payments

Not too bad if you are OK getting called in a year

78014RPF1 RBC (A1/A) 7-year (BUT 2-year callable) 5.55% with Semi-Annual payments

Just as an alternative for longer duration but with a haircut on your coupon

Neither of these speaking to me at this point but if I had to buy, I would probably go with TD in this case.

 

[jgman]

89114XAW3 TD Ameritrade (A1/A) 4-year (BUT 1-year callable) 6.15% with Quarterly payments

Not too bad if you are OK getting called in a year

78014RPF1 RBC (A1/A) 7-year (BUT 2-year callable) 5.55% with Semi-Annual payments

Just as an alternative for longer duration but with a haircut on your coupon

Neither of these speaking to me at this point but if I had to buy, I would probably go with TD in this case.

Keep'em coming. I think I'm going to put a modest amount in the TD Ameritrade 6.15% bond. Still looking for something in the 5yr range.

 

[erkevin]

Huntington Nat Bank 5.650% YTM 6.22% Callable but first is call is November, 2029 44644MAJ0

 

[jgman]

Huntington Nat Bank 5.650% YTM 6.22% Callable but first is call is November, 2029 44644MAJ0

I tried to purchase through Schwab but it's a 250k minimum ugh

 

[imbatman]

Yes that is a nice one @erkevin but not available on ML and $250K on Fido, outside my league by far. I have watched that one for over a month and the minimum never changes.

Somewhat similar to that though (and available in low quantities), is one I bought a few weeks back.

91159HHW3 USB (A3/A-) 3.0% (about 6.0% YTM) 07/30/2029 (6-year, first call 04/30/2029).......not great for high-end of your ladder building but nice to get some of that interest payment in advance.

 

[erkevin]

Sorry about the Huntington Bank tease. I saw the 250 minimum, but it never fully occurred to me....derp!

 

[imbatman]

Fido just posted 3133EPQX6 FFCB (Agency) 6.25% but callable in 3 months

Not for me but for those in the market

 

[imbatman]

Fido has:

38150ATX3 Goldman (A2/BBB+) 5.75% 10-year (callable 01/31/2025)
78014RPG9 RBC (A1/A) 5.65% 10-year (callable 07/31/2025)

At this point I am waiting for Fed and seeing how/if the offerings improve

 

[imbatman]

Finally something I am considering dipping into:

(Fido) 3133EPSA4 FFCB (Agency) 5.96% 15-Year (callable 08/04/2025)

 

[Healthy Lifestyle]

Finally something I am considering dipping into:

(Fido) 3133EPSA4 FFCB (Agency) 5.96% 15-Year (callable 08/04/2025)

Why only considering this, as it looks like a good bond to hold?

 

[imbatman]

Why only considering this, as it looks like a good bond to hold?

I bought a little but would really like longer dated holdings.......and while 5.96% is very good, for having rates going up again, seems like this might could be better in the future (who knows)

 

[COcheesehead]

Why only considering this, as it looks like a good bond to hold?

Depends if one wants short term yield or dependable longer term income.

 

[Healthy Lifestyle]

I bought a little but would really like longer dated holdings.......and while 5.96% is very good, for having rates going up again, seems like this might could be better in the future (who knows)

I have a roll over 401K IRA with Merrill Edge and dont see this agency
bond offered.
At some point I will have to transfer assets to Fidelity or Vanguard to get the best rates.