Corporate and Agency GSE Bond DEALS and NEW ISSUES

jldavid47 said:
3130AXHQ4 FHLB 6.55% 10/25/2033 Callable after 4/25/24
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I can't seem to see this at Vanguard. Do they not work in the new issue space? I search for new issues and get nothing. Which brokerage has this?
Thanks for posting!
 
Can someone help me understand these? Is there any form of insurance with them. I think not. Just the faith of the issuer. Am I on the right track?
 
ShokWaveRider said:
Can someone help me understand these? Is there any form of insurance with them. I think not. Just the faith of the issuer. Am I on the right track?
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No insurance, but safe.
The upside is good coupons and secure.
Downside, pretty illiquid and may get called well before maturity if rates fall or if rates rise, you could be stuck with an underperforming bond.

If you want reliable longer term income, search for non callable, quality, corporates. You usually can find a nice combination of safety, good income and liquidity.
 
imbatman said:
Are you referring to the 2 agency/ GSE bonds above? They are not insured commercially (which often gets you a AA rating) but have IMPLICIT backing of the government. But basically, their own credit plus whatever the gov may/ may not provide.

This is the best FAQ I used when reading up

https://www.raymondjames.com/wealth...vernment-sponsored-enterprise-debt-securities
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I was asking about any Agency or Corporate bond. Reading you link it seems only Ginnie Mae are guaranteed by the Government.

It seems they may also be too long term for my time horizon.
 
Yes most are not explicitly guaranteed. They offer variable maturity dates and variable call dates. Current new issues on Fido have maturity dates from 2026-2043 and you get higher rates for the longer issues (but in today's rate environment, likely all will be CALLED and not mature). Anyhow good luck.
 
ShokWaveRider said:
I was asking about any Agency or Corporate bond. Reading you link it seems only Ginnie Mae are guaranteed by the Government.

It seems they may also be too long term for my time horizon.
Click to expand...

If the issuer runs into financial difficulties and can't pay, then there is a general expectation that the US government would intervene since they are government sponsored entities.

S&P rates that 3130AXHQ4 issue as AA+ and Moody's rates it Aaa.
 
TORONTO DOMINION MTN FIX TO FLOAT
10/20/26 YR 1 FIXED 7.00% YR 2, YR 3 SOFR +1.00%, NO MAX

89114X871

A1 rating

I generally have more faith in the quality of Canadian Bank than in US banks

No call provisions matures in 3 years.

SOFR is currently in the 5.3% range but will drop if the fed starts lowering rates
 
Nice interesting find. SOFR rate today is 5.031% and my guess (no crystal ball here!) is Year 2 (2025) and Year 3 (2026) will be lower after rate cuts.....so probably looking at 5.25-5.75% total in Yrs 2 and 3....not bad but I might be inclined to get something more fixed. Still A1 is nice and in the chance that rates stay or go up during 2025/2026, this would be a really nice holding.
 
RE2Boys said:
TORONTO DOMINION MTN FIX TO FLOAT
10/20/26 YR 1 FIXED 7.00% YR 2, YR 3 SOFR +1.00%, NO MAX

89114X871

A1 rating

I generally have more faith in the quality of Canadian Bank than in US banks

No call provisions matures in 3 years.

SOFR is currently in the 5.3% range but will drop if the fed starts lowering rates
Click to expand...
Zero coupon. So no income stream. Low ish yield.
 
any new interesting find of the corp bond?

Just wondering say if s&p 500 drops 10% how will that effect the corp bond price?
 
3130AXGD4 FHLB (AAA, GSE) 7.0% is back (15Yr w/ 3 month call)....has a 10 purchase minimum
 
imbatman said:
3130AXGD4 FHLB (AAA, GSE) 7.0% is back (15Yr w/ 3 month call)....has a 10 purchase minimum
Click to expand...


I hate to chase yield, but the 6.83% FHLB I bought last week hasn't settled yet. I guess I could cancel it to get this one. Does that sound possible?
 
imbatman said:
3130AXGD4 FHLB (AAA, GSE) 7.0% is back (15Yr w/ 3 month call)....has a 10 purchase minimum
Click to expand...
At Schwab these are only available slightly over par which brings the yield to first call down to 6.59 or worse. You lose just over 4 basis points (to first call) for every .01 over par you pay on these. The best price at Schwab right now is 100.10. There are also offers at 100.15 and 100.20.
 
jldavid47 said:
At Schwab these are only available slightly over par which brings the yield to first call down to 6.59 or worse. You lose just over 4 basis points (to first call) for every .01 over par you pay on these. The best price at Schwab right now is 100.10. There are also offers at 100.15 and 100.20.
Click to expand...
At Fido, these are available as a new issue.
 
MercyMe said:
I hate to chase yield, but the 6.83% FHLB I bought last week hasn't settled yet. I guess I could cancel it to get this one. Does that sound possible?
Click to expand...

Only if you have a cancel option yet. I find that usually is no longer available after 4 pm the day you make the initial purchase.
 
MercyMe said:
I hate to chase yield, but the 6.83% FHLB I bought last week hasn't settled yet. I guess I could cancel it to get this one. Does that sound possible?
Click to expand...


I've done similar. But IIRC the 6.83%'r has 1 year of call protection vs 3 months on the 7%
 
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