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

[Lstansbury]

Just picked up 3 year non-callable 5% CD through TD Ameritrade, with 10K sitting around, wish I could have gone to 5 years, but 401K brokerage window rules with former employer are weird and might force me to sell early.

thanks for heads up Freedom re 5% at TDA

 

[Freedom56]

Dallas based Comerica Bank notes with 4 month duration are selling now with a yield of 9-15%. The ask yield on Fidelity is 9% with no bids.

 

[Freedom56]

Article for Barron's today:

"Moody’s Scrutinizes First Republic and Other Banks. Where Was It Before?"

"Moody’s action is surely a welcome peep out of one of Wall Street’s most respected ratings agencies. But it seems too little too late—for investors, regulators, and the banks still above water, to say nothing of those that collapsed and their employees. To downgrade the debt of Signature and withdraw ratings days after it was shut down only underscores the point."



https://www.barrons.com/articles/moodys-bank-ratings-first-republic-svb-stock-50da7ba9?mod=hp_LEAD_2

 

[bmcgonig]

Some good 1 yr and 18 mo CDs on Schwab at 5.4%

 

[Freedom56]

Goldman Sachs 5 year 6% note is now available at Fidelity. Only one year call protection. Remember these like the CD issues were filed and priced 7-10 days ago when yields were higher.

I have the 5%, 6.25%, 6.625%. and 6.75% notes from Goldman Sachs.

 

[Gumby]

Article for Barron's today:

"Moody’s Scrutinizes First Republic and Other Banks. Where Was It Before?"

"Moody’s action is surely a welcome peep out of one of Wall Street’s most respected ratings agencies. But it seems too little too late—for investors, regulators, and the banks still above water, to say nothing of those that collapsed and their employees. To downgrade the debt of Signature and withdraw ratings days after it was shut down only underscores the point."



https://www.barrons.com/articles/moodys-bank-ratings-first-republic-svb-stock-50da7ba9?mod=hp_LEAD_2

The rating agencies lost a lot of their credibility in the global Financial Crisis of 2007/08. https://www.reuters.com/article/us-...over-crisis-era-ratings-idUSKBN0L71C120150203

 

[Winemaker]

6% Federal Home 5 year at Fidelity, minimum buy $10,000.

 

[pb4uski]

^^^ Callable?

 

[Winemaker]

^^^ Callable?

No call protection.

 

[Winemaker]

^^^ Callable?

No call protection.

There was another one of shorter duration earlier but it's gone now.

 

[Montecfo]

Yes I looked at those agencies but with immediate call I view them as very short term.

They are just bridging to lower rates.

 

[Golden sunsets]

Back to the topic of bonds, CDs, and treasuries in the "Golden Period". The 5 year 5% non-callable are gone at Fidelity. There some 4 years 5.05% non-callable CDs still remaining as well as 5%+ for 1,2 and 3 years. There are no new corporate notes and the secondary markets for high grade notes are not offering any deals. So CDs are still best option right now.

We filled our 3, 4, and 5 year call protected CD rungs today at 5%. It was touch and go trying to nail down the 5 year 5%, but thanks to your post highlighting another tranche of Discover 5%, 5 year call protected, we managed to get the last rung filled. Thanks Freedom.

 

[Freedom56]

Another Batch of 5%/5 year dropped on Fidelity from Discover and others. You can still ladder 5%+ from 6 months through 60 months.

 

[Freedom56]

We filled our 3, 4, and 5 year call protected CD rungs today at 5%. It was touch and go trying to nail down the 5 year 5%, but thanks to your post highlighting another tranche of Discover 5%, 5 year call protected, we managed to get the last rung filled. Thanks Freedom.

Glad it worked out. There are more in the CDs pipeline and every drop gets swallowed up pretty fast.

 

[Popeye]

Another Batch of 5%/5 year dropped on Fidelity from Discover and others. You can still ladder 5%+ from 6 months through 60 months.

And just like that the Discovery ones are scooped up! Synchrony still available for now! Hurry if you want them!

ETA: that didn’t take long. Under an hour and all gone. Thanks for the tip Freedom56. I got my 5 year portion.

 

[Freedom56]

And just like that the Discovery ones are scooped up! Synchrony still available for now! Hurry if you want them!

Another batch was dumped. I have been buying a lot of CDs again today but this time for my parents joint account that I have power of attorney.

 

[Spock]

Today's quandary becomes:
Do I sell some longer term 2023 callable GSE's/CDs that are a little underwater
in hopes of getting some of the straggler 5% 5year non-callable CDs that trickled out.

Some of the math treating the (par minus current value)=early withdrawal penalty in the should-I-break-this-CD calculator comes out to almost a wash. So I think those would be reasonable to sell in return for call protection as the high yields make them prime call targets.

But the dilemma becomes "what if there aren't any (close to) 5% 5yr non-callables left by the time the sales clear".
Would this be a place to dip your toe into buying on margin (if that is even an option for buying bonds) to get the replacements locked in before the sales clear?

 

[pb4uski]

Yes I looked at those agencies but with immediate call I view them as very short term.

They are just bridging to lower rates.

Hard to know. I had one called 3 months after issue and a 6.38% and 6.54% that are still alive and kicking but I'm sure it is just a matter of time before they are called.

 

[Freedom56]

Today's quandary becomes:
Do I sell some longer term 2023 callable GSE's/CDs that are a little underwater
in hopes of getting some of the straggler 5% 5year non-callable CDs that trickled out.

Some of the math treating the (par minus current value)=early withdrawal penalty in the should-I-break-this-CD calculator comes out to almost a wash. So I think those would be reasonable to sell in return for call protection as the high yields make them prime call targets.

But the dilemma becomes "what if there aren't any (close to) 5% 5yr non-callables left by the time the sales clear".
Would this be a place to dip your toe into buying on margin (if that is even an option for buying bonds) to get the replacements locked in before the sales clear?

I would hold steady on the GSEs. Long term treasury rates are far too low relative to the the current CPI and even at 2%. Short term rates are not going too much higher. So if the Fed decides to hold rates steady instead of hiking, the market may stop discounting a recession and sell the long of the yield curve pushing rates up.

 

[Quattro73]

Well heck, I was tied up at work all day and missed the 5% CDs.

 

[simple girl]

Well heck, I was tied up at work all day and missed the 5% CDs.

I missed the 5 yr 5% CD's as every time they were posted I was away from my computer.

I did fill up yrs 1-4 on my new ladder with 5%+ CD's (even nabbed a 5.4% for 1 yr), so very grateful for that.

I'm still seeing 5%+ 1-4 yrs noncallable at Fidelity, if you are looking for that.

Hopefully there will be a few more 5 yr 5% CD's posted tomorrow when I'm near my computer!

 

[GenXguy]

I missed the 5 yr 5% CD's as every time they were posted I was away from my computer.

I did fill up yrs 1-4 on my new ladder with 5%+ CD's (even nabbed a 5.4% for 1 yr), so very grateful for that.

I'm still seeing 5%+ 1-4 yrs noncallable at Fidelity, if you are looking for that.

Hopefully there will be a few more 5 yr 5% CD's posted tomorrow when I'm near my computer!

Yeah, just got in on the 2, 3, 4 year 5%+ at Fidelity also. No 5 year.

 

[Freedom56]

Another batch of 5%/5 year landed at Fidelity and they are going fast. The 1,2,3, and 4 are also still available.

 

[simple girl]

Another batch of 5%/5 year landed at Fidelity and they are going fast. The 1,2,3, and 4 are also still available.

What the heck? This time I was sleeping.

Gracious. I appreciate the updates...maybe I'll get lucky this morning, ha ha!

 

[simple girl]

What the heck? This time I was sleeping.

Gracious. I appreciate the updates...maybe I'll get lucky this morning, ha ha!

I got lucky!

There are a few at Fidelity right now, 5%, 5 yr. Going fast.