Bond Discussion

This is a page where bonds can be discussed. I am thinking primarily $1,000 issues which are of interest to folks.

Like the other discussion pages posts will stay intact for a number of months.

783 thoughts on “Bond Discussion”

      1. Yes, if your broker pays it correctly, it will be a qualified dividend. (Some back office systems trip on these, so it is broker dependent whether they get it right or not)

    1. Wanda, just not enough difference in price with a CD or MMF to interest me. The floaters Dick’s been coming up with are more interesting.

  1. A little bump in rate for new TDA Bond offering. Royal Bank of Canada, 20yr, 6%, A-rated, CUSIP 78014RXP0. Have been shying away from these latest TDA offers to try and get us to jump on some duration. I’m a sucker for Canadian banks. Putting this one in the ‘I’ll think about it pile’.

    1. I also like the CAN banks. They are a fortress. RBC has done nothing but go up ; even during the covid crisis it held steady. Personally, I like the common better than the debt on this. I

      1. TNT, I am a fellow shareholder of RBC, for many years. Actually, I hold stock of all the Big 5 Canadian Banks. Just added to TD and BNS recently.

    1. Dick—yesterday 3x Schwab quoted me a price for this issue which l accepted, but the market maker would not execute when Schwab went back to them. Today, I finally got a fill at $99.69. It was very frustrating, but that’s the way it goes when working with the Schwab bond desk. They will not take a firm order ahead of time.

      1. That’s strange. That’s not typically how it has gone for me with these types of purchases. Occassionally there will be mishaps but overall it’s been relatively smooth.

        I just added to a Stanley Black & Decker 5 year reset (CUSIP 854502AM3). It resets or will be called on 3/15/24. The yield to first call they quoted me was 18.3%.

        https://www.sec.gov/Archives/edgar/data/93556/000119312520023095/d859870dfwp.htm

        I don’t think I see anything that appealing that trades with a ticker symbol so hopefully the hassle of calling the bond desk pays off.

  2. I just bought the FHLMC 6.25% new issue that settles on 3/28. Aaa/AA+
    10 year maturity, but can be called quickly like almost all agency issues.
    If it gets called quickly, I suspect that I can find an IG non-agency issue at an equivalent rate because I think credit spreads will widen even as (if) the Fed lowers short term rates. Who knows? Just my rationalization for buying it.

  3. Still want some more bonds. But not in a hurry. Figured I would wait until after the Feds meet and see what the market reaction is. Bet it’s a big yawn.
    But you never know. I can see them saying nothing yet on lower rates, still say cuts are in the cards, but if they are vague about it happening in June or July then I think might be some reaction with people taking bets off the table.
    Exactly like people here have been talking about

  4. If I was looking for a safe place to hide out for a year, I might buy this:
    FHLB 3130B0C72 6.04%
    call 3/7/25, maturity 3/7/44
    trading at par

    I’d rather have that than a highly-rated pfd/BB with a CY of 5.x% if I was worried about market turbulence. I’d sacrifice tradeability for yield and security.

      1. Another on FIDO…
        FHLB 3133EP4T9 2034 6.07% for 5 bonds

        My only reservation is that valuation/purchase values for Agencies are much weaker than T’s.

        Tradeoff: Agencies 125 bps more than T’s

        Two reasons:
        – T non call
        – Liquidity MUCH less for secondary Agencies

        Gotta think about that on a 20 year maturity.
        Can’t assume the Agency will be called.

    1. Thanks R2S – just what I was looking for. Was interested in a one year Treasury or CD. Most likely will be called on 3/7/25 but if not, it’ s all good!

        1. If you call Fidelity’s fixed income group (1-800-544-5372), they may be able to assist you with purchasing. You can start off the conversation by saying that you’re looking for help with purchasing a bond that is not in Fidelity’s inventory. They should be able to request pricing from one of their dealers and then get back to you on what they can find.

          1. Question. Lately, fidelity claims I need to purchase a min of $50k face value to utilize their bond desk for offers not in inventory.

            This seems a bit high, so wondering if others have a similar experience.

            1. Maine,

              I made the same request for information from Fidelity last week and received the same reply.

              1. Not what I wanted to hear, were you calling the number Dick listed above? I am looking at rolling 10,000 into 1 company maybe 2.
                Side note, I have noticed getting dinged small fees at Schwab same with T Rowe but they have been crediting the account back.
                If one broker starts by doing incremental fees then they all will.

                1. Another thought just occurred to me, I scanned the bond offers at Fido just like their website layout better than Schwab and haven’t seen anything that really called out to me. Maybe that’s why Fidelity is doing it. They make more money for one and they are nudgeing you to inventory to move it. The offerings have changed a lot in the last 6 months, I don’t see a lot of variety more REIT’s,BDC’s and a few international bonds. I was used to seeing utilities, pipelines and oil companies and banks seem to be scarcer now on what they offer

            2. $50k is nuts. Schwab will let you buy in whatever increment you want. I’ve bought in smaller increments through Schwab before with no issues. I think my smallest might’ve been $5k. I’ve done this with Schwab many times too as I feel like I find better value in institutional issues lately…especially with variable rate issues.

              I generally find Schwab’s fixed income people to be WAY better than Fidelity.

              1. PLAINS ALL AMERN PIPELINE L P 6.70000% 05/15/2036 SR NT
                1,000 $0.99 $986.75 acquired 2023-09-19, current value $1,042.55
                Fidelity allowed me to buy 1 bond, so maybe things have changed.

  5. Too bad , so sad I received notice my 2026 Callon Pete bonds will be called. I bought them almost exactly a year ago for 95 full call April 1st for 101.06
    I was happy collecting the 6-1/2% for another 2yrs. B2 rated Now I have to go looking again.

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