jazz4cash
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Was there ever any explanation for how this blunder occurred?
How does a call work? you receive a message a month early and on the day the bond (aka the principal) is automatically returned to your account with interest?
Was there ever any explanation for how this blunder occurred?
I would speculate the date in the computers is correct but the issuer simply misread the call date. Issuer directed admin to call the bond and there are no checks/balances for this form of human error. I can’t see admin deciding on their own but could’ve had a blanket instruction to call as soon as possible.
I bet we plow through. I’m down to a single 3% add on CD so the timing for rates to rise feels lucky to me.
I am similar to njhowie. About 10% matures in each of the next few years. The plan is to continue to roll it into more bonds.
I feel if you stay true to the ladder process it will reward you.
Picked up tax free insured muni with disclosure anticipating being called in 6 months (new issue expected to be floated to refinance) 2.47% yield to call. If they don't call, then 3.62% YTM Feb 2027.
Again, not bad at all.
That bond may hold up to maturity. I imagine we'll see fewer calls as interest trates rise.
The 2012 Bonds are expected to be defeased on the date of issue of
the 2022B Bonds and to be redeemed on August 1, 2022.
I'm pretty sure it will be called, only because they've given advance notice/warning:
https://emma.msrb.org/P21535945-P21187220-P21605178.pdf
Looks like the process is indeed in motion ...
I do not hold any munis (unless they are in BND?) and it is not an asset class I want to study and hold, not high enough income to warrant learning more. But...I want to support my local library as I volunteer and donate there and they will be issuing a bond. I am happy to buy some but don't want to throw money away, I could just make a donation. But if buying the bond will help I can't find much of interest in fixed income these days so might as well hold something like this. I'm not trying to get the highest return but just want to avoid a disaster. Any quick advice on what to look for and what to avoid?
I do not hold any munis (unless they are in BND?) and it is not an asset class I want to study and hold, not high enough income to warrant learning more. But...I want to support my local library as I volunteer and donate there and they will be issuing a bond. I am happy to buy some but don't want to throw money away, I could just make a donation. But if buying the bond will help I can't find much of interest in fixed income these days so might as well hold something like this. I'm not trying to get the highest return but just want to avoid a disaster. Any quick advice on what to look for and what to avoid?
Picked up tax free insured muni with disclosure anticipating being called in 6 months (new issue expected to be floated to refinance) 2.47% yield to call. If they don't call, then 3.62% YTM Feb 2027.
Again, not bad at all.
724791bh0what's the cusip?
I stumbled on this bond this morning: CUSIP 606432CQ3, Missouri state college bond, maturing 10/23 with call of 3/12/2022. The odd call date suggests to me that the call is a given, although Fidelity lists no defeasance or call announcement. Coupon is 2.89% to maturity and ask is face value. So it may be a wash for the purchaser after markup if the bond is called in a month.
Looking at the documents associated with the bond, there are several failure to report notifications and administrative shakeups. S&P rates the bond BBB.
It's only a $5K bond, and I don't see a point in buying - even with a 2.8% yield - if it's going to be called in a month. I do see some bonds like this pop up occasionally, so I thought it might be a subject for discussion. Would anyone care to discuss?