We are entering a "Golden Period" for fixed income investing

[aja8888]

Interesting. Not alarmed yet but let's see what their 10-K looks like. Link to the Bank's 3Q22 10-Q

Wolf Street had an article on this crypto bank published Jan 5th. Looks like CNBC is late to the game.

https://wolfstreet.com/2023/01/05/c...wiped-out-im-waiting-for-the-fdic-to-show-up/

So it had to raise lots of cash fast.

At first through wholesale funding. “As customers began to withdraw deposits during the fourth quarter of 2022, Silvergate utilized wholesale funding to satisfy outflows,” it said today.

It sold short-term CDs through brokerage firms to the public (“brokered CDs”). By December 31, it held $2.4 billion of these CDs. If buyers stay within FDIC rules, their CDs are FDIC insured.

It borrowed $4.3 billion in short-term advances from Federal Home Loan Banks.
When that wasn’t enough, it sold securities, at a huge loss. “Subsequently,” when wholesale funding wasn’t enough, Silvergate sold $5.2 billion of debt securities, such as Treasury securities, “for cash proceeds.” And it booked a loss of $718 million on the sale of those securities “and related derivatives.”

 

[NomDeER]

Not on Schwab

Not on Vanguard either. It's frustrating. It's also frustrating that my employer retirement account at Fidelity does not allow me to buy individual bonds. Only bond funds. (I sold the bond funds last year.)

 

[Born2Fish]

Did Fed Farm CR BKS get called?

I clicked on the Cusip in my TDA acct it showed this:

FEDERAL FARM CR BKS

CUSIP:

3133ENU24
6.450% 10/19/2037


Moody's Research Report now available!
Called

 

[copyright1997reloaded]

That are available now in Fidelity. I bought some this morning.

Ha ha, I missed these again. Too busy doing other stuff and I didn't look this morning. Oh well.

 

[finnski1]

Ha ha, I missed these again. Too busy doing other stuff and I didn't look this morning. Oh well.

I put my order in at 10 this morning and it now says "execution pending" so I'm assuming I'm going to get it. Was just an open order all day until market close.

 

[COcheesehead]

Did Fed Farm CR BKS get called?

I clicked on the Cusip in my TDA acct it showed this:

FEDERAL FARM CR BKS

CUSIP:

3133ENU24
6.450% 10/19/2037


Moody's Research Report now available!
Called

Yep, I got the ME notice yesterday afternoon.

 

[KevinZ]

Ha ha, I missed these again. Too busy doing other stuff and I didn't look this morning. Oh well.

check back tomorrow after the market opens.

 

[jazz4cash]

Wolf Street had an article on this crypto bank published Jan 5th. Looks like CNBC is late to the game.

https://wolfstreet.com/2023/01/05/c...wiped-out-im-waiting-for-the-fdic-to-show-up/

Cramer and CNBC had it about the same time.

 

[Freedom56]

Banks are starting to extend their call protection for retail corporate notes. This new issue from TD Bank has 2 years of call protection on a five year note. It is offered at TDA.

***THE TORONTO-DOMINION BANK CALLABLE FIXED RATE NOTES

CUSIP / ISIN: 89114X5V1 / US89114X5V12

Offering Period: 01/19/2023 - 01/26/2023

Maturity Range: 2028 - 2028

Settlement Date: 01/31/2023

Moodys/S&P: A1/A/

01-31-2028


5.250

100.000

Quarterly

Callable
01/31/2025@100

 

[finnski1]

check back tomorrow after the market opens.

It's there again right now.

 

[Freedom56]

The view from Larry Summers.

"The ‘greatest tragedy’ would be if central banks don’t finish the job on inflation, Larry Summers says"

"But relief must not become complacency. Inflation is down, but just as transitory factors elevated inflation earlier, transitory factors have contributed to the declines that we’ve seen in inflation and as in many journeys, the last part of a journey is often the hardest.”

https://www.cnbc.com/2023/01/20/sum...l-banks-dont-finish-the-job-on-inflation.html

So high rates for longer. The golden period could last through this decade.

 

[Freedom56]

It's there again right now.

You are correct it is back. They are likely upsizing the issue. However consider that if a conservative bank such as RBC is willing to lock call protection for 5 years at 5.2%, it must believe that rates are staying elevated for much longer than the market believes.

 

[lordjust]

Banks are starting to extend their call protection for retail corporate notes. This new issue from TD Bank has 2 years of call protection on a five year note. It is offered at TDA.

***THE TORONTO-DOMINION BANK CALLABLE FIXED RATE NOTES

CUSIP / ISIN: 89114X5V1 / US89114X5V12

Offering Period: 01/19/2023 - 01/26/2023

Maturity Range: 2028 - 2028

Settlement Date: 01/31/2023

Moodys/S&P: A1/A/




Royal Bank of Canada 5.5% 01/23/2031 Callable

78014RKG4

2 years as well

 

[finnski1]

You are correct it is back. They are likely upsizing the issue. However consider that if a conservative bank such as RBC is willing to lock call protection for 5 years at 5.2%, it must believe that rates are staying elevated for much longer than the market believes.

Yes. I've only purchased a small amount at this time. Still trying to take advantage of future developments.

 

[lawman]

I have a similar order for Bank of America. Is it as safe?

 

[pb4uski]

I have a similar order for Bank of America. Is it as safe?

Relative to what? Have you looked up the issues credit ratings?

 

[lawman]

Relative to what? Have you looked up the issues credit ratings?

Royal Bank of Canada

 

[pb4uski]

Royal Bank of Canada

What are RBC and BoA S&P and Moody ratings?

 

[lawman]

BoA is A1 or A2

 

[lordjust]

What are RBC and BoA S&P and Moody ratings?

 

[Freedom56]

Royal Bank of Canada

Banks of America is safe. RBC is safer. I own a lot of Bank of America notes but at higher yields. In general , the major Canadian banks are much safer than US banks. TD Bank is on track to becoming the largest bank in Canada and one of the largest in the U.S.

 

[lawman]

Banks of America is safe. RBC is safer. I own a lot of Bank of America notes but at higher yields. In general , the major Canadian banks are much safer than US banks. TD Bank is on track to becoming the largest bank in Canada and one of the largest in the U.S.

It was one of Schwab's New Retail Issues listed about a week ago...As far as I can tell it seems they only offer high investment grade notes under that tab...

 

[Montecfo]

TD Ameritrade Senior Unsecured
Cusip:87236YAJ7
Rated A2/A
Due: 10-1-29
Coupon 2.75%
Make Whole call
Callable beginning 7-1-29
Yield 5.066%

This looked pretty interesting. TDA now owned by Schwab.

 

[Freedom56]

Ally Financial earned $2.2 Billion in the last quarter.

https://finance.yahoo.com/news/ally-financial-ally-beats-q4-135501407.html

While earnings are down YOY for most banks, they are still earning billions every quarter. For bond investors free cash flow and positive operating earnings are all that matter.

 

[lordjust]

Ally Financial earned $2.2 Billion in the last quarter.

https://finance.yahoo.com/news/ally-financial-ally-beats-q4-135501407.html

While earnings are down YOY for most banks, they are still earning billions every quarter. For bond investors free cash flow and positive operating earnings are all that matter.

thats a relief. I own that one and was regretting it because of their large number of car loans. .... hopefully their numbers stay good