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

[COcheesehead]

I read all the posts in this thread and 1/2 of them I do not understand. But I came to the conclusion my comfort zone is:

-Never buy callable. It's too complicated to keep track of the YTM, dates, and finding new issues to replace. I do understand you guys are in these transactions daily and go for every opportunity to make better returns or interest.

-My ladder is long and expands from 11 months to 5 years. But I know exactly how much interest I'll earn, and the YTM date and hope rates are better when it's time to buy another.

-When I get into the weeds of discount vs premium, callable vs noncallable, coupon and YTM yields, I want to know what's going into my settlement account and when I can buy the next rung on my ladder.

This discussion is fascinating for a newbie. I'm learning from the best. But I shy away from checking my accounts daily and keeping track of the minutia detail you guys talk about. It's all good. You don't lose $$ here. The stock index funds or stocks are an entirely different story.

Good for you. I commend you for knowing yourself and feeling confident in your choices. There is a lot of value in “good is good enough”.

 

[sengsational]

Good for you. I commend you for knowing yourself and feeling confident in your choices. There is a lot of value in “good is good enough”.

Yes. The market is pretty efficient, and although it's possible to get a few tenths more at the same risk level if you sweep up some crumbs, not everyone is motivated to do the extra work. Getting it done and getting on to other things is worth something too. Unless, of course, fiddling with bonds is your "other thing" that gives you jollies.

 

[COcheesehead]

Yes. The market is pretty efficient, and although it's possible to get a few tenths more at the same risk level if you sweep up some crumbs, not everyone is motivated to do the extra work. Getting it done and getting on to other things is worth something too. Unless, of course, fiddling with bonds is your "other thing" that gives you jollies.

Yep people get caught up in workout dates and minutiae that in the end really doesn’t matter. There are so many better options in bonds these days than a year ago. If you capture 80% of the “golden period” be happy.

 

[lordjust]

This one reappeared and i bought some this AM.

none available on schwab.. in case anyone is looking

 

[COcheesehead]

none available on schwab.. in case anyone is looking

It’s a secondary market bond - it’s not brokerage specific like a new issue could be.

 

[Chuckanut]

As to why there are bonds that are not callable until a few months before maturity, I figured it was so they wouldn't have such a huge spike in their workload. IOW, they could "get started" wrapping up that issue before the maturity date, leveling out workflow and maybe cash flow in the issuing entity. Just a guess, though.

Interesting. You might just be right. Your thinking is another example why " I don't know, what I don't know" keeps me humble.

 

[MercyMe]

none available on schwab.. in case anyone is looking

Not on Fido either.

 

[COcheesehead]

Not on Fido either.

It’s a secondary market issue. It’s not specific to any brokerage.

 

[jazz4cash]

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

https://finra-markets.morningstar.com/BondCenter/Default.jsp

Here is the link to the finra bond info site. Once you put your CUSIP in the search it will pull up details on the bond and a link to the prospectus.

Thanks but I still don’t see a prospectus/indenture/offering documents. I looked before on the finra bond site without success. I looked again using your link. Same result. Am I missing the link?

 

[lordjust]

It’s a secondary market bond - it’s not brokerage specific like a new issue could be.

404280DK2 is not available on Schwab but is on fidelity... unless I am not reading this correctly? I would (as chocheesehead stated) expect all secondary market items would appear on "any" brokerage site but .. im kind of at a loss to explain this.

per fidelity.. I just basically did a search on 7% yield bonds and this one shows up with a buy button and as i listed below bid/ask prices.

Bid Prices
Selected Price Bid Yield Qty(min) Bid Price (Sell)

7.399 200(200) 101.500

7.452 250(250) 101.141
Ask Prices
Selected Price Ask Price (Buy) Qty(min) Ask Yield

105.885 290(290) 6.767

market depth on schwab does not show this one with an ask price..

soooo.... is this one available only on fidelity and not schwab?

 

[COcheesehead]

404280DK2 is not available on Schwab but is on fidelity... unless I am not reading this correctly? I would (as chocheesehead stated) expect all secondary market items would appear on "any" brokerage site but .. im kind of at a loss to explain this.

per fidelity.. I just basically did a search on 7% yield bonds and this one shows up with a buy button and as i listed below bid/ask prices.

Bid Prices
Selected Price Bid Yield Qty(min) Bid Price (Sell)

7.399 200(200) 101.500

7.452 250(250) 101.141
Ask Prices
Selected Price Ask Price (Buy) Qty(min) Ask Yield

105.885 290(290) 6.767

market depth on schwab does not show this one with an ask price..

soooo.... is this one available only on fidelity and not schwab?

I don’t use Schwab so I don’t know this answer, but do their bond screens only go to a certain rating level?
This bond being a BBB. I know on Fidelity their initial screener won’t let you search the full universe. You have to search All to find lower rated bonds,

 

[Letj]

404280DK2 is not available on Schwab but is on fidelity... unless I am not reading this correctly? I would (as chocheesehead stated) expect all secondary market items would appear on "any" brokerage site but .. im kind of at a loss to explain this.



per fidelity.. I just basically did a search on 7% yield bonds and this one shows up with a buy button and as i listed below bid/ask prices.



Bid Prices

Selected PriceBid YieldQty(min)Bid Price (Sell)



7.399200(200)101.500



7.452250(250)101.141

Ask Prices

Selected PriceAsk Price (Buy)Qty(min)Ask Yield



105.885290(290)6.767



market depth on schwab does not show this one with an ask price..



soooo.... is this one available only on fidelity and not schwab?

Is anybody buying this one?

 

[Spock]

Is anybody buying this one?

Unless there is a "depth of book" available, its got $200K minimums.

 

[pb4uski]

I bought some shorter term 20 month TVA bonds to complete my bond "stepladder" which is tied to planned spending over the next 24 months.

With a few 5 year TIPS (I know you were getting some too) I have made good progress on my regular ladder but will keep fishing for more.

I actually cancelled my order on the 5-year TIPS. It would have totally tapped out my dry powder and I wanted to keep a little in case some unusually good opportunities arise. But TIPS are still on my radar screen... I have som sizeable maturities in 1Q23 that I may then look at TIPS.

 

[lordjust]

I don’t use Schwab so I don’t know this answer, but do their bond screens only go to a certain rating level?
This bond being a BBB. I know on Fidelity their initial screener won’t let you search the full universe. You have to search All to find lower rated bonds,

technically yes, but in this case that is not filtering it out. it shows up but you cannot buy it... it appears as any other bond that you want to search for but nobody is selling. They have the standard "you can call us on this one" text. That means they will need to look it up to put in a manual order which you can do with ANY bond. Perhaps its the $200k limit? I just wanted to bring it up as one that did appear in one brokerage but not the other.

 

[lordjust]

i probably would have purchased this one but i am currently out of dry powder.. thought i would toss it out to the peeps on the thread. looks like 22k is remaining??

06749N3F7
Barclays PLC 6.1% 11/22/2027 Callable
100.38762
ytm 6.006
ytw 5.646

 

[Mulligan]

404280DK2 is not available on Schwab but is on fidelity... unless I am not reading this correctly? I would (as chocheesehead stated) expect all secondary market items would appear on "any" brokerage site but .. im kind of at a loss to explain this.



per fidelity.. I just basically did a search on 7% yield bonds and this one shows up with a buy button and as i listed below bid/ask prices.



Bid Prices

Selected PriceBid YieldQty(min)Bid Price (Sell)



7.399200(200)101.500



7.452250(250)101.141

Ask Prices

Selected PriceAsk Price (Buy)Qty(min)Ask Yield



105.885290(290)6.767



market depth on schwab does not show this one with an ask price..



soooo.... is this one available only on fidelity and not schwab?

If you can handle duration did this one come across your screen?
https://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C969426&symbol=SJI5156685
Why would a BBB- 2031 subordinate debt yield a gaudy
8.61% YTM?
Well its a big boy pants thing as long standing gas ute holding company South Jersey Industries is being bought out and taken private by IIF. IIF took El Paso Electric private a few years ago too and have maintained their IG status. I bought 15k of this. Being its going private their bonds may become harder to trade, but I like a little spice in some of my bonds….
The Infrastructure Investments Fund (IIF) is an approximately $20 billion private investment vehicle focused on investing in critical infrastructure assets. IIF is responsible for investing and growing the retirement funds of more than 60 million families. Headquartered in New York with additional offices in London, and advised by a dedicated infrastructure investment group within J.P. Morgan Investment Management Inc., IIF is a long-term owner of companies that provide essential services, such as renewable energy, water, natural gas and electric utilities, and transportation infrastructure, all of which are vital to the economic health and productivity of the communities in which it operates.

 

[beachfire]

Thanks but I still don’t see a prospectus/indenture/offering documents. I looked before on the finra bond site without success. I looked again using your link. Same result. Am I missing the link?

When you click on the link, go to search tab and type in your CUSIP. Then it will bring up the details for that bond and for most bonds they will provide a link for he prospectus. I included a couple screen shots to help guide.

 

[beachfire]

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

when you click on the link, go to search tab and type in your cusip. Then it will bring up the details for that bond and for most bonds they will provide a link for he prospectus. I included a couple screen shots to help guide.

View attachment 44474

 

[Montecfo]

I actually cancelled my order on the 5-year TIPS. It would have totally tapped out my dry powder and I wanted to keep a little in case some unusually good opportunities arise. But TIPS are still on my radar screen... I have som sizeable maturities in 1Q23 that I may then look at TIPS.

I see. I got a chunk for diversification but still a few rungs left. Also have some floaters I may liquidate and replace with fixed coupon so I will be busy for a while if so.

 

[conversationalphrase]

i probably would have purchased this one but i am currently out of dry powder.. thought i would toss it out to the peeps on the thread. looks like 22k is remaining??

06749N3F7
Barclays PLC 6.1% 11/22/2027 Callable
100.38762
ytm 6.006
ytw 5.646

Thanks for the tip, but unfortunately (for me) it's not available on Fidelity.

 

[jazz4cash]

When you click on the link, go to search tab and type in your CUSIP. Then it will bring up the details for that bond and for most bonds they will provide a link for he prospectus. I included a couple screen shots to help guide.

I am familiar with navigating to the bond details page but I’ve never seen the prospectus link. I tried 5 CUSIPS. None of them have the prospectus link. I only got the trade history link which does work. I put in the CUSIP for the GD bond in your screenshot and I did get the prospectus link but it does not work. It tries to open but I just get a blank page. I found a JNJ bond with the MWC provision. It also has the prospectus link but it won’t open either. Do these links work for you?

 

[beachfire]

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

I am familiar with navigating to the bond details page but I’ve never seen the prospectus link. I tried 5 CUSIPS. None of them have the prospectus link. I only got the trade history link which does work. I put in the CUSIP for the GD bond in your screenshot and I did get the prospectus link but it does not work. It tries to open but I just get a blank page. I found a JNJ bond with the MWC provision. It also has the prospectus link but it won’t open either. Do these links work for you?

Huh? I have noticed that not all bonds have he prospectus link. Are you using Google Chrome as your browser? Only thing I can think of as to why the link may not work

 

[lordjust]

Thanks for the tip, but unfortunately (for me) it's not available on Fidelity.

its not on schwab now either... maybe the listing expired and it will be reposted today (during trading hours) ? Thats a total guess on my part because i looked in the trades and i didnt see anyone buy it. ill check later to see if it pops up.

 

[lordjust]

its not on schwab now either... maybe the listing expired and it will be reposted today (during trading hours) ? Thats a total guess on my part because i looked in the trades and i didnt see anyone buy it. ill check later to see if it pops up.

hrmm... i thought there were only 22 available.. check out the time stamp and my post time stamp

12/21/2022
14:59:59
12/23/2022
Trade
25000
99.525


according to finra .. i think someone grabbed it.. coincidence it was 15 min after my post??..