Question About Selling CDs on Schwab

[ShokWaveRider]

Not that I want to, just now, but if one needed some money and wanted to sell their brokered CDs, how does it work.

Say a brokered CD one owns shows a gain on Schwab of say $5,000. Is that the premium that it will sell for?

 

[H2ODude]

I needed some cash and sold a CD on Fidelity. IIRC it didn't have but 6 months or so left and it had an interest rate below what was current. I plugged it in and they told me what it would bring if I sold it so I did. It was close to what Fido had been showing as its value in my holdings. I would think Schwab would have something similar that would tell you what you'd get before you execute it.

 

[OldShooter]

Schwab Bond Desk: 800-824-4027

 

[ShokWaveRider]

Schwab Bond Desk: 800-824-4027

I know that ......

 

[ShokWaveRider]

I guess my question is whether one gets what Schwab shows as premium when one sells them?

 

[OldShooter]

I guess my question is whether one gets what Schwab shows as premium when one sells them?

And you don't want to just call the bond desk and ask?

 

[ShokWaveRider]

And you don't want to just call the bond desk and ask?

If I wanted to sell I would, I was hoping someone who has done it would respond. I am perfectly aware of the bond desk without your Continuing reminders, I heard you the first time!

 

[pb4uski]

Not that I want to, just now, but if one needed some money and wanted to sell their brokered CDs, how does it work.

Say a brokered CD one owns shows a gain on Schwab of say $5,000. Is that the premium that it will sell for?

I would not rely on the values on the Positions summary page. Go to the menu for the bond or CD that you want to get pricing for (three parallel horizontal lines at the right end of the line for that bond or CD) and click on Buy/Sell. That will open a page of open Bids99.334 and another for 98. for that bond or CD. Then click on Request a Bid and you will receive a bid to buy your CD within about 20 minutes. If you like the price, then sell it.

For example, for one of my brokered CDs the Positions summary page currently says 99.9375 but there are two bids, one for 99.334 and another for 98.990, both lower than the 99.9375 on the summary page.... but IME when I request a bid it is usually better than the 99.334.

For fun, I'll request a bid and let you know what it is.

 

[ShokWaveRider]

I would not rely on the values on the Positions summary page. Go to the menu for the bond or CD that you want to get pricing for (three parallel horizontal lines at the right end of the line for that bond or CD) and click on Buy/Sell. That will open a page of open Bids99.334 and another for 98. for that bond or CD. Then click on Request a Bid and you will receive a bid to buy your CD within about 20 minutes. If you like the price, then sell it.

For example, for one of my brokered CDs the Positions summary page currently says 99.9375 but there are two bids, one for 99.334 and another for 98.990, both lower than the 99.9375 on the summary page.... but IME when I request a bid it is usually better than the 99.334.

For fun, I'll request a bid and let you know what it is.

Thanks, that is exactly the information I was looking for. I hope OldShooter reads this.

 

[pb4uski]

Bid came in. It was 99.597, so better than the best bid previously but less than the market value shown on the positions page.

And that has been my experience... if I request a bid it is usually better than the bids shown but less than the market value on the Positions page.

And BTW, it took a lot less of my time than calling the bond desk.