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.

1,008 thoughts on “Bond Discussion”

  1. NEW Issues:

    Morgan Stanley Fin 5.85%
    05/08/2034 (2 year call protection)
    61766YSW2
    A-/A1
    YTM/YTW = 5.85%

    The Coca-Cola Co 5%
    05/13/2034 [Basically NOT callable (not until 2/23/2034)]
    191216DR8
    A+/A1
    YTM/YTW = 5.03%

    Consolidated Edison 5.375%
    05/15/2034 [Basically NOT callable (not until 2/15/2034)]
    209111GH0
    A-/NR
    YTM/YTW = 5.380%

    The Coca-Cola Co 5.3%
    05/13/2054 [Basically NOT callable (not until 11/13/2053)]
    191216DS6
    A+/A1
    YTM/YTW = 5.375%

    Reply

    1. Here’s another new issue:
      Royal Bank of Canada 6.0%
      05/17/2039 (4 year call protection)
      78014RSG6
      -/A1
      YTM/YTW = 6.0%

      Reply

  3. First of all, I love the site because of the insights of Tim and all of the posters here.

    Dick had a post where he linked to a Barron’s article on institutional preferred shares. This opened an entire world to me and I was able to buy some yesterday after 2.5 hours on the phone with various TD and Schwab trading desks. Many thanks to Dick for pointing out that simple but exciting article. This leads to 2 questions.

    1 – how do people receive information on newly or upcoming issues?
    2 – once we are aware of an issue, how can we find it’s CUSIP and associated prospectus?

    With regards to #2, I have spent a ton of time trying to track down the O series of Goldman Sachs and I still can’t find the prospectus. I’ve searched the web (which I think I am pretty good at with my programming experience) and still haven’t found it.

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        1. Yield, I only did the slightest of cursory on this, so I have to ask this.. Are you positive this issue is still outstanding (trading)?

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          1. Grid, I lost this thread. I do believe it is active as a dividend was paid on 5/10. I didn’t pull the trigger on it though because it is fixed until 2026. It’s possible that it is was just called but hard to tell.

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          1. Here is the correct CUSIP with trace info: 38148BAC2

            Symbol: GS4385340 CUSIP: 38148BAC2 Bond Type: CORP
            Coupon Rate 5.3%
            Maturity Date N/A
            Last Trade Price $101.04
            Last Trade Yield 5.245%
            Last Trade Date 5/7/2024
            Callable Y
            Next Call Date 11/10/2026

            Reply

  4. I decided to add to my largely devoid “high risk bucket”, and reentered the old delisted PFX.
    https://www.quantumonline.com/search.cfm?tickersymbol=TEMP55&sopt=symbol
    Phoenix Company was bought out in 2016 and went private by Nassau. And ultimately renamed Nassau Companies of NY
    https://nfg.com/investor.html
    I originally purchased probably 6-7 years ago around $17 if memory serves and accepted (accidentally by playing with tender offer in account) the tender at $20, two years ago.
    https://www.businesswire.com/news/home/20220511006181/en/The-Nassau-Companies-of-New-York-Announces-Cash-Tender-Offers-to-Purchase-Notes-due-2032-and-2034
    I thought about reentering but never got around to it, but I stumbled onto this and decided to reenter from respected insurer rating agency A.M.Best.
    https://news.ambest.com/pr/PressContent.aspx?refnum=34405&altsrc=2&_gl=1*1a413vx*_ga*MTQ5MjQ5NzMzNi4xNTk4OTY2Mjc0*_ga_VNWYD5N5NL*MTcwNzkyMDc4Ni41NDUuMS4xNzA3OTIxMTQ2LjAuMC4w
    I am no insurance balance sheet reader and dont even attempt to. But I do know now since being bought out it has had a couple of modest credit upgrades and now this year being put on credit positive. So the company is doing a lot better since being recapitalized after going private. If memory serves they got stressed over a decade ago from some dreaded “long term care plans” which lead to being bought out and taken private.
    Any-whose…. I bought a modest 600 at $18.40. Which is a current 10.12%, and over 13% YTM (aint doing the math) come 2032. Originally was a $300 million issuance, was pared down to $200 when they bought some back over time years ago, and then offered a tender for $75 million more 2 years ago. There is no fire sale here as it always seems to randomly bounce between $17-$20. It is so under radar it was trading well below tender offer when being tendered. I would have bought more and just tendered them two years ago, but I was afraid they would exceed tendered amount and I would be stuck with them. So I didnt. Anyways, dont confuse the amount of verbiage to the love I have for it, just it has always been a unique if not opaque issue.
    And last time Azure brought this up in January, there was no real credit info on it for quite a while. A.M. Best positive opinion in February is the most recent seen in a while…..If you own the bond, you are allowed access to financials….Good luck interpreting I never bothered after the first poking being I am not qualified. Meanwhile as Alpha (just kidding) and Rita Moron would say, “I am collecting great income together”, buying “hand over fist”, “once in a decade opportunity”, yadda yadda, lol.

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    1. You forgot to associate your buy with “it’s like what Buffett’s doing.” Moron wouldn’t have forgotten that one…..

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      1. 2WR, you are most certainly correct! My mind is slipping!!! Oh wait, I forgot another one…”Backing up the truck”!

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    2. Every time someone mentions this I try to figure out where and how they buy it. PFX seems to be trading at $44. What ticker do you see at 18? Thanks!

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      1. Irish, that is a reissued ticker symbol unrelated to the Nassau New York (Phoenix Cos) bond. This is a $25 baby bond that was delisted in 2016 (after they gave a nominal bonus from bond holders to approve the delistment which they didnt have to do). You have to call the bond desk to get a quote, and possibly like I did past the village idiot (bless her heart, sweet but totally unknowledgeable income rep) to recieve one. The cusip number it trades by is 71902E208.

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      2. Irish, let me add a bit of color. You most likely will get an income rep who says, I dont see any shares available so I cant offer you any. Then you have to say, “you need to bump this up to a fixed income senior rep who can contact 3rd party bond desk for a quote. I got the needed handoff. The next guy found me some for $18.50 and said that seemed high. I told him it was for last trade but not for the previous ones, and he looked laughed and agreed. He actually searched a bit more and found $18.40, I said take it. Being a small investor on a small purchase I am not going to quibble over it.
        But important to know, one needs to assume to buy and hold. As it wont trade like normal bond purchases as you will never see a bid ask quote from your brokerage. The point being, if you ever had to sell its take it or leave it, likely, and they could be out to scalp you just to sell them $2 higher right after scalping you. Previously I just bought and held it for several years and just collected the quarterly interest payment. I never tried to sell and just tendered them at $20. So unless there is some nice unexpected tender (like delisted BB SJIJ I bought around $13) I will just hold and collect quarterly payments until maturity, death or bankruptcy whichever comes first. There certainly are lower credit quality issues with considerably lower yield and lower YTM’s than this one. But as with everything there is a trade off for that.

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  5. The shorter maturity Barings BDC bond offers a similar YTM, for anyone interested:

    BARINGS BDC INC SER B NOTE – 3.30000% 11/23/2026, 06759LAC7
    Offered at 91.86 (fidelity) or 6.839%
    BARINGS BDC INC NOTE – 7.00000% 02/15/2029, 06759LAD5
    Offered at 100.4 (fidelity) or 6.896%

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        1. No point really Maine, except I can buy and sell without going through the bond desk.

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        2. In my opinion the 2 could be good investments but they really arent comparable investments. Barings is IG rated the US Cellular trust certificates are not. One is a relative illiquid ETD where a few thousand shares can move price either way, while the other is basically computer programmed to follow the general movements in bond market spread in general and it has an abundance of liquidity. Plus as you mentioned their durations are not the same either. But again, I am not suggesting either one is better for Charles. I do own the 2029 Barings just for a hold until maturity.
          I really havent watched it since I bought at 7.15% and 7.25% so a little surprised its price has appreciated so much in short order. But I really shouldnt since yields have dropped quickly the past week or so.

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          1. 100%. Totally apples to oranges. And Barings is completely owned by MassMutual thus I have a large piece of this bond.

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            1. Charles, I continue to be a long term holder/hoper of GJH. The strategic review is certainly taking a while!

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              1. Oh I see; Charles M wasn’t actually making a specific comparison, rather just a more general comment about getting a similar yield in not having to go through a bond desk.

                For those Baring bonds, you won’t have to. I actually posted that bond awhile back in this forum. Charles M, you should definitely look at getting a more user friendly bond trading broker. Other than minimums, buying individual bonds via self direct online route has now gotten very convenient.

                There have been some incredible yields the last few months and some real deals will pop up at random times of the day. I run intraday searches all day long. Another very favorable attribute on individual bonds for me in general is getting that locked in fixed duration. It really helps building a more comprehensive ladder structure especially for those of us driven solely by an income generating allocation strategy.

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                1. theta.. Which broker to you typically use? any other tips or tricks to score some good deals?? 🙂

                  BTW, Fidelity hasn’t been able to source the old SJI prefs or the Phoenix issue for me. It feels like Fidelity is pushing away the non-inventory bids.

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                  1. Maine, if they (or the rep you talk to depending on brokerage policy) wont contact 3rd party bond desks you just arent going to get anywhere. And its all quirky from brokerage to brokerage. Take Vanguard. They wont allow OTC trading, nor would they allow me to buy the 9.75% SCE Series E floater (I got it via Schwab later) because they wont allow purchase of bond desk preferred floaters they instructed me. But they freely allow purchase of the old PFX and SJIJ…..Go figure…..

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                    1. Thanks, Grid. Yeah, I have learned the ropes (from you and others)… The Fido rep did contact their bond desk but they swung out each time. They usually call me back within 30 min or so. I just ended up settling on some more of the SJIJ 2031 issue: 838518AA6
                      Waiting to hear back on exact execution, 60% of the time they come back with slightly better execution than what was quoted. I think they always quote a smidge higher to manage expectations. I will probably transfer some assets to e-trade eventually, as they have a new account bonus and I hear they offer many structured sectors such as CMBS.

                  2. Maine & rocks2stocks

                    Gosh it’s been nearly 20 years since I opened up my Zions account specifically for trading individual bonds. They were ahead of their time for many years. At some point, more recently, I was basically pushed onto the IB platform. Admittedly I really need to use that more as a priority.

                    I’m much more active on Merrill Edge (so convenient with my business, checking accounts etc.) and now also basically E Trade (thanks to their combo with Morgan Stanley) I will say the amount of liquidity providers, as far as bonds go, on E Trade was very surprising.

                    As far as my scans, I heavily lean on excel for that. I utilize analytical programs such as Cbonds, MBIS etc. along with live available inventory at any point in time. I’m just dumping down large amounts of data into my formulaic workbooks and then quickly filtering for my particular desired yield range, duration, credit quality, industry etc.

                    There will also be random times in the day where a small retail odd lot is offered at an outlier type yield or on the flip side a 100 or 200 piece buy all lot as well. You have to be quick to grab these. I would say my best finds are typically between 9am-10:30am. Obviously there are other variables when this can change and opportunities arise later in the day, say when we had that streak of the 10 year violently rallying.

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                    1. Also wanted to add, Fidelity gets knocked for some legit hang ups and limitations but on the plus side, they are the only large scale broker that has their own crypto platform. You can buy spot Bitcoin and Ethereum with Fidelity.

                      Additionally they also have an integrated commodities platform as well and you can trade spot Gold which is vaulted right here domestically in the USA. Most other entities or Gold ETFs all have their spot located in Europe. None of it is vaulted domestically. Hence I use Fidelity exclusively for crypto and spot Gold.

                    2. Theta, interesting you would mention Zions Direct (ZD). Their bond screener was a “white label” offering from the company “Bond Desk”, which got bought out by Tradeweb. Tradeweb is one of the largest bond trading exchanges. The screener was by far the gold standard of retail brokerages IMO. ZD used National Financial aka Fidelity as their back office, but ZD’s trading desk in Salt Lake City reviewed every single bond order you submitted before they would route it out. Some percent of the time you would get a call from them asking “do you understand that bond XYZ has defaulted or some other bad thing.” They used their Bloomberg terminal to get the latest info that might not be as readily available to the retail buyer. In any event, they changed from Bonddesk/National to Interactive Brokers and you now get the IB bond screener which is second or third rate IMO.

                      Some smaller brokerages and/or RIA’s still use the Bond Desk now TradeWeb screener, but I do not have any names.

                    3. Some smaller brokerages and/or RIA’s still use the Bond Desk now TradeWeb screener

                      In my E*Trade (now owned by Morgan Stanley) account, opening the bond screener takes me to a “psc.bonddesk.com/etrade” URL.

                    4. Tex the 2nd, I absolutely concur with your observations on Zions Direct and the present IB screener.

                      Sincerely miss those early days running endless scans on ZD. I didn’t really ever hear from their bond desk as back in those days I really stuck with buying higher credit quality corps, especially given how high yields were (this was years before ZIRP)

                      Thanks for all that behind the scenes context and appreciate the stroll down memory lane. I think out of all the platforms I’ve presently seen, Morgan Stanley/E Trade is pretty decent.

                2. theta-
                  Doing intraday searches in the bond market sounds like a Bloomberg-level activity. I’m impressed/envious. What are the parameters?

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                3. Thanks Theta, it was an Apples to Oranges comparison as Grid said, but I was comparing it for yield and no commission trades in and out. Wasn’t looking at maturity either.
                  On this site we have been talking about various times to hold and I think I am like most depending on the quality or the company I can go with holding higher risk 1 to 2 years and slightly higher risk 3 to 5 years and lately I am fine with holding something decent for about 10 years. Beyond that, 2050 to 2060 I don’t think I need to worry about

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    1. TNT-
      Thanks for the article. I’m on the same page as Gross. We both used the same word “inexorable.” Should the 10-year surpass 5%, agencies should see 7% or more again.

      I wish I knew how to earn more than 5% and stay liquid.

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  7. ALL New issues offered at par:

    DOW Chemical CO Senior 5.25%
    05/15/2029 (Callable starting 11/15/2024)
    26054ME31
    BBB/Baa1
    YTM/YTW = 5.25%

    Verizon Communications Inc 5.10%
    05/15/2029 (1 Year call protection)
    92346MNB3
    BBB+/Baa1
    YTM/YTW = 5.10%

    Ntnl Rural Utilities 5.00%
    05/15/2029 (2 Year call protection)
    63743F2P0
    A-/A2
    YTM/YTW = 5.00%

    Wells Fargo & Co 6.05%
    05/06/2034 (2 Year call protection)
    95001DG53
    BBB+/A1
    YTM/YTW = 6.05%

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  8. Deutsche Bank Ag Callable Fixed Rate Notes (CUSIP: 25161F3J5)
    6%, 2034, call 2027, A1/A, offered until May 10

    Does the name Deutsche Bank make anyone nervous?

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    1. The first quarter of 2024 is the fifteenth consecutive quarter of profit for Deutsche Bank, following the completion of an extensive restructuring plan that began in 2019 with the aim of reducing costs and improving profitability.

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      1. Personally, I try to avoid companies (esp. banks) that have had big “ethical” problems (Deutche Bank, Wells Fargo….) until management is replaced and they have a bunch of years of good behavior.

        Corporate culture matters, and once a company gets into the “fast and loose” game, or the “we won’t get caught” game, etc., it is VERY hard to clean things up. Changing top management is usually a start, but changing the whole company culture once bad habits have taken root is really hard.

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    2. I would take the JPMorgan 6%er I posted down below with 2 year call protection all day long over this. Ten years is a long time and allot can happen.

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  9. Does anyone have knowledge of the taxation of income of Canadian bank bonds? I’d liked to add a position or two of the new issues offered at Fidelity, but don’t want to create a complicated tax situation by income from Canada.

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    1. NG,
      I have several Canadian Bank Bonds; TD, RY, and BMO in an IRA. There is no Canadian withholding tax on those. But that’s currently. About to have my brokerage switched from TDA to Schwab so I’m hoping that situation stays the same. If you have taxable account I’m not sure what/if any Canadian withholding is done.

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    2. I haven’t owned canadian bonds in decades, so I don’t recall details.

      IIRC, Bond interest is subject to 15% withholding, but you can usually get a credit for it on your US taxes (in a taxable account). I don’t recall how it is treated in a retirement account.

      Here is the tax treaty.
      https://www.irs.gov/pub/irs-trty/canada.pdf

      Reply

    4. New Guy,
      I have a couple of Canadian bonds in my taxable accounts, Royal bank and Canadian Natural Resources. They have been handled exactly the same as US bonds, ie. no withholding tax or other tax issues. I did have taxes withheld from Enbridge preferred shares. Good luck.

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  10. For Grid and fellow Ute fans.. The Eastern Gas 2049 3.9 is being offered for 69.4 or 6.33% YTM. Here are some notes from Moody’s:

    CUSIP: 276480AB6
    Issuer: EASTERN GAS
    TRANSMISSION AND STORAGE,
    INC.

    Summary
    Eastern Gas Transmission and Storage, Inc.’s (EGTS) credit profile reflects its relatively low business risk as an interstate natural gas pipeline network serving high demand based markets in the northeast, its access to abundant natural gas supplies from the Marcellus and Utica supply
    regions and a significant underground storage system. EGTS’ revenues are generated predominantly from take-or-pay type contracts with remaining lives in the range of five years with primarily investment grade counterparties.

    EGTS’ credit quality also considers the company’s position as a subsidiary of Eastern Energy Gas Holdings (Eastern Holdings, Baa1 stable) which is in turn owned by Berkshire Hathaway Energy Company (BHE, A3 stable). BHE has capitalized EGTS with an approximate 60-62% equity layer,
    consistent with its regulatory authorization, and it should generate a ratio of funds from operations (FFO) to debt of 24% to 30%. However, with the absence of strong ring-fencing type provisions surrounding the operating subsidiary, the rating of EGTS will likely remain closely aligned with that
    of its direct parent Eastern Holdings.

    Rating outlook
    The stable outlook for EGTS reflects our expectation that the company will maintain its strong competitive position and continue to generate stable and predictable cash flow from its underlying contracts. The stable outlook also reflects our expectation that EGTS’ targeted capital structure will
    enable the company to generate a ratio of funds from operations (FFO) to debt of around 24% to 30%.

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    1. Thanks for the heads up Maine. Interesting issue. I am considering swapping out my NRUC 5.5% (2064- yielding 5.68% for me) holding for this. I would pickup about 0.8% with a slight uptick in rating. Waiting to hear what others (Grid) thinks of this issue.

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      1. Proto, this is just a “me thing” only. Im not excited for this for 2 reasons that may not be important to you. 1) This is long dated paper being 2047, so the nice 6.3% is only about 5.6% actually interest paying yield. The rest has to be gained by holding until maturity which is probably longer than my own shelf life. 2) I do own some long dated perpetuals from similar quality utes. But I get the QDI, higher yield, and ability to trade off the lower stack preferred. Bonds I feel obligated to hold to maturity as I cant trade off bond spreads as well as preferreds.
        The furthest I have my neck extended out for a true bond is 2035. That is kind of my limit. The company I have no problem with whatsoever.

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        1. Thanks Grid for snapping me back to reality. I saw the referenced 6.33 YTM and all I could think of was it as current yield. You are correct – unless the holder is going to be around a long time, they will never see the 6.3%. It’s still an interesting issue, just not what I was looking for to replace my NRUC (which I like but trying to juice a little more out of that allocation).

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          1. For long holds CY is really all that matters. And what is a payment far in the future actually worth if properly discounted? The answer often is not much.

            I’ve got a couple of bonds with nice CYs when I bought them that will outlive me. I don’t care awfully much what the bond can be sold for after I’m gone. Wheeee!

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          2. There’s something missing here, Proto.. This is just too broad a statement to be a mantra… In general, I’m not a fan of long maturity bonds either, but it’s not because I’ll never see the 6.30% in my lifetime using this particular example. It’s because I’m unwilling to take on the added “duration” risk that exposes me to larger price changes when interest rate change with longer dated maturities… It’s almost as if the assumption is that magically, one day at maturity, the value of your bond will jump 30 points all at once and you’ll never get any of that appreciation any other way unless you hold to maturity.

            If you own this 3.90% bond due 11/15/49 at 69.40 to yield 6.33% YTM today, and you can sell it at 6.33% YTM one year from now, you’ll sell it at 69.434 and you will have achieved 6.33% yield for your holding period including the accrued, wouldn’t you?. That doesn’t sound like much increase in price, but that amount of increase accelerates each year that the bond remains worth 6.33%

            Also, regarding your swap, don’t forget that if, for example, you own 400 ($10k principal) NRUC and you sell them at 24.62 approx (I’m not sure if you’re saying 5.68% YTM or 5.68% current and/or if you talking about your original cost or today’s market price), you would be able to buy 14k bonds of CUSIP: 276480AB6 (not just 10k amount of NRUC) and have some cash left over.

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            1. We seem to get back to this discussion dont we, 2WR, ha. Its important to know both sides of the nuances (current yield vs YTM), but it can matter more depending on ones needs as rocks2rocks mentioned for his situation. Some issues its more apparent than others. If one is wanting current income and not wanting to get it by selling the issue via cap gain, it does matter to them.

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              1. yeah, we do, Grid – I guess probably because it was my field, and because, as you said, it’s important to know both sides of the nuances, current yield vs YTM. No one knows both sides and is capable of exploiting both sides than you, G, and you do it when you’re most comfortable with interest rates in general. There are reasons why in general you’re not doing it now as much as you normally and I would theorize the reasons don’t center only around available current yield. Saying, “for long holds, CY is really all that matters,” if nothing else needs an asterisk for those who are not as familiar with or experienced with debt investing. I’m not trying to imply R2S is one of those guys, just that there are readers who might benefit from more from adding some of the nuances than merely following the mantra….

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                1. Ironically 2WR, I do the opposite with preferreds. Sacrificing some yield to get as far below par as possible.

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                  1. Yup, I know………trading off duration risk and current yield for price appreciation potential.

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                    1. Good discussion!

                      There are many angles to view things. To each there own, we all have different objectives and investment styles. Looking at your time horizon is one of them.

                      Another factor could be your view on the attractiveness of the yield. Yield can be broken down into rates and spreads. Let’s say you have a neutral view on rates (i.e. the market is correct) but you like the spread… In that instance, you want to pick the longest duration/maturity bond possible. The bond will rally as the spread gravitates closer to fair value. It’s called spread duration or DxS for the 2whiteroses of the world.

                      My rough math had the Eastern Gas bond at a spread of ~150bps, which is very attractive compared to other longer duration super high quality names.

                      P.S. the Eastern Gas 2029 is trading for 5.4% YTM so you are picking up almost a full percent by extended the duration. With that said, I completely understand why many folks wouldn’t extend duration beyond their time horizon. The best investors know their risk tolerance and are disciplined.

          3. One of the possibilities with a high-yield, long duration IG bond is that at some time in the future rates will fall and the bond will appreciate and can be sold for cap gains. I think odds favor such an event in the next ten years. Of course, rates can rise and the bond lose value, but over long periods rates don’t stay at extreme levels for very long. I always assume HTM and that’s fine. I’m unsophisticated and rarely trade.

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        2. Gridbird
          Me too on duration. I’m even shorter.
          I feel anything 5 years or less I can hold to maturity in the worst case, and, as debt, most likely to be repaid.
          Anything later than 2030 I consider the equivalent of equity.
          Therefore, I compare it to pfds which offer higher yields and QDI.

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  11. National Bank of Canada 6% (new issue)
    04/30/2029 (Call protection for 1 year)
    CUSIP = 63305LZH9
    Aa3/A
    YTM/YTW = 6.01% (offered just under par)

    GXO Logistics, Inc. 6.25% (new issue)
    05/06/2029 (Not callable until 04/06/2029)
    CUSIP = 36262GAF8
    BBB-/Ba1
    YTM/YTW = 6.10% (offered just over par)

    Goldman Sachs 6.125% (new issue
    04/30/2031 (Call protected until 10/30/2025)
    CUSIP = 38150AZS7
    BBB+/A2
    YTM/YTW = 6.07%/5.9%

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  12. Just a small bond purchase for me today, but looks like an excellent long-term hold:

    Black Hills Corp, rated Baa2/BBB+. Coupon rate of 6.15%, not callable until 2/15/2034. The issuance was for $450M, so there should be plenty of liquidity. CUSIP is 092113AW9. Vanguard has them this afternoon at 100.195 with a low minimum of two bonds. YTM is 6.123%

    The bond was issued in September 2023 and the first interest payment is not until May 15, 2024, so the accrued interest will bring the initial cost up a little bit. This will be a great long-term holding for me in the fixed income portion of my retirement account.

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    1. I held Black Hills debt before so I am comfortable picking them up again. I like the relatively long duration on these. Thanks Lou for the heads up on this.

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  13. JPMORGAN CHASE 6%
    04/29/2039 (Callable not for 2 years in April 2026)
    48130CKK0
    A-/A1
    YTM/YTW = 6.05% (Selling under par)

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  14. Sorry to see it go. GEO is redeeming 36162JAC0 at $102 on 4/29/24. It was paying 10.5% and at redemption an extra 2%.

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    1. Me too! HY high risk has paid off the last couple of years. I am ahead more on CCC rated than IG. I know when to get off the merry go round before musical chairs begin. Will be more conservative now that economist are declaring we have a good economy. 🙂

      Rida and crew are taking a second bow as Riley and others are surviving. There is now a HDO SWAG store if one wants to purchase. Ha

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  15. Bank of America Corp 6.05%
    05/01/2029
    CUSIP 06055JEG0
    A-/A1
    New issue selling par

    JPMorgan Chase & Co. 6%
    04/28/2034
    CUSIP 48130CKC8
    A-/A1
    New issue selling par

    Reply

    1. I would rather buy an US govt agency bond than BOA bond since BOA is callable in 6 months like many of the agency bonds. Last week, 6.5% for FHLB also callable in 6 months.

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      1. SteveA – I hear you. I’m looking at this from more of an allocation/duration perspective. I have too many 20 year agencies already. Looking to get some spots much lower down on the ladder. At this point I really wanted to get a perpetual JPM security type at 6% or better, so that bond is perfectly timed.

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    2. I was interested in the JPM issue as well but have paused. This is new issue that was priced at PAR over a week ago. My concern is has the recent uptick in rates this past week, is this issue still well priced. Since it’s not trading yet, it can adapt to the market until it trades.

      (Q) Should i buy it at initial offer or wait for it to start trading?

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      1. Proto-
        Did you check the secondary market to see what a 6% IG bank bond with 2 years to maturity is going for?

        I’ve bought many new issue bank bonds at par. Usually, they immediately trade down, kind of annoying but I’m HTM so why should I care? I buy a bond because I like the coupon or CY. I try not to second guess myself.

        Reply

  16. Comparing two State Street variable $1000 perpetual, non-cumulative preferreds.
    Series H, 857477BA0, now floating, 3mL+2.539%, adjust/calls 3/15, 6/15, 9/15, 12/15
    Series I, 857477CH4, 6.7%, 5y yield + 2.613%, first reset/call 3/15/29

    Series H pros: CY > 8% if bought at par; cons: call risk, rate cut risk
    Series I pros: 6.7% for five years if bought at par; cons: lower yield now

    Reply

    1. rocks—I own a lot of the 6.7% STT-I issue at par. I like the yield protection for 5 years and the Baa1/BBB investment grade status. Also the qualified distribution because it’s a preferred stock and not a bond. If rates go higher, I will add to my position.

      Reply

  17. Those interested in international bonds. Mexico has election on June 2 and India counts votes on June 4. It is good to watch the market reactions to these events. May be a nice entry point.

    Reply

  18. PEMEX article states 2025 debt to be refinanced. https://www.bloomberg.com/news/articles/2024-04-20/mexico-s-frontrunner-sees-pemex-refinancing-debt-in-2025?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTcxMzYyMjA2NCwiZXhwIjoxNzE0MjI2ODY0LCJhcnRpY2xlSWQiOiJTQzdEV1pUMVVNMFcwMCIsImJjb25uZWN0SWQiOiJESU5NVldFNE81R1BPMDRCSFFGTUtKS0pUMUlMTklIRiJ9.KYTUfspYQZtni2hlJRLQiqRI6mPwNuOJGA_YPbkv0uY?sref=3yhq6DEX

    Reply

  19. Am considering purchase of European government bonds as forecast is for lower interest rates sooner than USA. I don’t have the skill to pick individual international bonds so looking at the Vanguard Total International Bond Index (BNDX) sans US.
    I have always invested in US with international exposure through US conglomerates.
    I hesitate as middle east oil impact on Europe can disrupt their economies.
    So waiting.
    The BNDX will capture any gains in Europe alongside India.
    Any thoughts?

    Reply

    1. I like your pick alot, its been on my watchlist for awhile and ironically feel close to buying this myself.
      I recently picked up WIP, more of inflation protected Bond fund. It’s worldwide but seems to have a decent amount spread out thru Europe.
      If you decide to jump into BNDX more than likely I’ll be close behind you.

      Reply

  20. This is a follow up to a post from last Friday 4/12/24. Here is a list of all $1k face floating/variable interest rate Utility bonds and preferreds. I have focused on Utes since they seem to attract the most interest from III’ers. We all know there are many moving parts on variables including what the reference interest is, how was the change from Libor handled, what is the first date the interest can change, how often can it change, ad nauseum. . . .

    BLACK BOX WARNING: This list does NOT include all of the data you MUST have before deciding to purchase any of these. You absolutely, positively, MUST spend more time to make sure you understand exactly how each issue is structured. Not to mention having to guess how the company will proceed, i.e. do you forecast it will be called and when.

    Many on this list appear to be Fixed to Float issues that are still in their fixed phase. This is why their current coupon rates are relatively low. Of course the key to understand is when they start floating and on what base/margin

    The data I have included is:
    Company name
    CUSIP
    Current coupon yield, assumes price @ par
    Current yield based on latest ask price, which presumably you can buy the issue at, although the minimum quantity might be up to $250, plus some are 144a’s
    Base interest rate: SOFR, 3ML- 3 month LIBOR which means I did NOT trace how it has changed post Libor, ??= unknown, UST5= 5 year US Treasury
    Margin above the base is NOT included because I am not happy with the quality of my data, although you can calculate it reasonably well based on the coupon yield.
    Next call date or “continuous” which roughly means it can be called on ~ 30 day notice, i.e. it is past its first call date.
    Maturity date if it is a bond, perpetual if it is a preferred which might NEVER be called

    I did not attempt to make the data look pretty on this post, because it is let us say difficult. The data is setup for you to copy into a spreadsheet as a “CSV” file, then parse into columns. I will make subsequent posts with detailed instructions on how to import these to both Excel and/or Google Sheets. Don’t worry, anybody can easily do this, no PHD required.

    The list is sorted by highest current yield

    Header row

    Name,CUSIP,Coupon yield, current yield, Interest base, Call status, Maturity date,Moodys,S&P

    Southern California Edison Co,842400FU2,9.767,9.74,SOFR,Continous,Perpetual,BAA3,BB+
    National Rural Utilities Cooperative Corp,637432MT9,8.489,8.49,SOFR,Continuos,4/30/43,A3,BBB
    PPL Capital Funding Inc,69352PAC7,8.236,8.25,SOFR,Continous,3/30/67,BAA2,BBB
    Edison International,281020AZ0,8.225,8.03,UST5,Uncallable,6/15/54,BAA3,BB+
    NextEra Energy Capital Holdings Inc,302570AW6,7.631,7.97,3ML,Continous,10/1/66,BAA2,BBB
    Edison International,281020AX5,8.125,7.87,UST5,Uncallable,6/15/53,BAA3,BB+
    WEC Energy Group Inc,976657AH9,7.681,7.84,SOFR,Continous,5/15/67,BAA2,BBB
    Sempra,816851BS7,7.5243,7.54,??,7/1/29,10/1/54,BAA3,BBB-
    National Rural Utilities Cooperative Finance Corp,637432PB5,7.125,6.9,UST5,Uncallable,9/15/53,A3,BBB
    Emera Inc,290876AD3,6.75,6.8,3ML,6/15/26,6/15/76,BA2,BB+
    NextEra Energy Capital Holdings Inc,65339KCW8,6.7,6.71,??,6/1/29,9/1/54,BAA2,BBB
    National Rural Utilities Cooperative Finance Corp,63743HFQ0,6.2179,6.17,SOFR,Uncallable,2/5/27,A2,A-
    Georgia Power Co,373334KU4,6.0992,6.07,SOFR,Uncallable,5/8/25,BAA1,BBB+
    National Rural Utilities Cooperative Finance Corp,63743HFL1,6.0482,6.03,SOFR,Uncallable,5/7/25,A2,A-
    NextEra Energy Capital Holdings Inc,65339KCR9,6.0397,6,SOFR,Continuos,1/29/26,BAA1,BBB+
    CenterPoint Energy Inc,15189TAZ0,5.9996,6,SOFR,Continuos,5/13/24,BAA2,BBB
    NextEra Energy Capital Holdings Inc,65339KBK5,5.65,5.87,3ML,5/1/29,5/1/79,BAA2,BBB
    Laclede Gas Co,84859DAB3,5.8534,5.84,SOFR,Continuos,12/2/24,A1,A
    Dominion Energy Inc,25746UBY4,5.75,5.75,3ML,10/1/24,10/1/54,BAA3,BBB-
    National Rural Utilities Cooperative Corp,63743HFA5,5.6851,5.68,SOFR,Uncallable,10/18/24,A2,A-
    Mississippi Power Co,605417CC6,5.6563,5.66,SOFR,Uncallable,6/28/24,A3,BBB+
    Edison International,281020AS6,5.375,5.57,UST5,3/15/26,Perpetual,BA1,BB+
    Consumers Energy Co,210518DG8,5.4085,5.41,SOFR,9/15/49,9/15/69,A1,A
    Algonquin Power & Utilities Corp,015857AH8,4.75,5.4,Reset,1/18/27,1/18/82,NR ,BB+
    Florida Power & Light Co,341081GC5,5.3029,5.39,SOFR,3/1/51,3/1/71,A1,A
    National Rural Utilities Cooperative Finance Corp,637432NK7,5.25,5.37,3ML,4/20/26,4/20/46,A3,BBB
    Florida Power & Light Co,341081GJ0,5.2205,5.27,SOFR,6/15/52,6/15/72,A1,A
    Edison International,281020AT4,5,5.27,Reset,Uncallable,Perpetual,BA1,BB+
    CMS Energy Corp,125896BU3,4.75,5.23,??,3/1/30,6/1/50,BAA3,BBB-
    NextEra Energy Capital Holdings Inc,65339KAV2,4.8,5.21,3ML,12/1/27,12/1/77,BAA2,BBB
    Florida Power & Light Co,341081GS0,4.998,5.03,SOFR,6/20/53,6/20/73,A1,A
    Sempra,816851BK4,4.875,4.98,??,10/15/25,Perpetual,BA1,BBB-
    Duke Energy Corp,26441CBG9,4.875,4.91,UST5,Uncallable,Perpetual,BA1,BBB-
    Dominion Energy Inc,25746UDD8,4.65,4.76,UST5,Uncallable,Perpetual,BA1,BBB-
    Dominion Energy Inc,25746UDM8,4.35,4.66,UST5,Uncallable,Perpetual,BA1,BBB-
    CMS Energy Corp,125896BV1,3.75,4.56,??,9/1/30,12/1/50,BAA3,BBB-
    Sempra,816851BM0,4.125,4.47,UST5,Uncallable,4/1/52,BAA3,BBB-
    American Electric Power Co Inc,025537AU5,3.875,4.29,Reset,Uncallable,2/15/62,BAA3,BBB-
    Southern Co/The,842587DF1,4,4.17,??,10/15/25,1/15/51,BAA3,BBB-
    NextEra Energy Capital Holdings Inc,65339KCB4,3.8,4.16,??,3/15/27,3/15/82,BAA2,BBB
    Southern Co/The,842587DJ3,3.75,4.06,??,Uncallable,9/15/51,BAA3,BBB-
    Duke Energy Corp,26441CBP9,3.25,3.66,Reset,1/15/27,1/15/82,BAA3,BBB-

    Reply

    1. Thanks Tex, these will be the only ones I would ever have interest in. Unwilling and unable to do spreadsheets and never will. But I cut and copied your info and pasted it into an email to myself. That is good enough for me!

      Reply

    2. How to import “CSV” data into an Excel spreadsheet:

      1. Open Excel

      2. Click on ”New Blank Workbook” if your Excel does not start with a blank worksheet

      3. On my original post, left click starting at the Name, Cusip line going all the way to the bottom of the data. This should “highlight” all of the data

      4. While the data is highlighted, click “Ctrl C” which is a shortcut for copying data

      5. Go to the newly opened Excel spreadsheet and click “Ctrl V” which is a shortcut for pasting data. That should put all of the data from my post into a single column A, with rows from 1 through XX

      6. The A column should still be highlighted, the click on “Data”, then “Text to columns”, “delimited”, check the “comma” click box, then “next”, then “Finish”

      7. The data should all be in nicely separated rows and columns with the header row containing the descriptions.

      8. You can save it with whatever name you like.

      Reply

    3. How to import “CSV” data into a ‘Google Sheet” which is their free version of Excel. Here is the process:

      1. On your browser (Google Chrome, Firefox, etc.) open up a new tab and enter: https://docs.google.com/spreadsheets/

      2. Click on “start a new spreadsheet” “Blank spreadsheet”

      3. On my original post, left click starting at the Name, Cusip line going all the way to the bottom of the data. This should “highlight” all of the data

      4. While the data is highlighted, click “Ctrl C” which is a shortcut for copying data

      5. Go to the newly opened Google Sheet tab and click “Ctrl V” which is a shortcut for pasting data. That should put all of the data from my post into a single column A, with rows from 1 through XX

      6. The A column should still be highlighted, the click on “Data” at the top which opens up a pulldown menu, select “ split text to columns”

      7. The data should all be in nicely separated rows and columns with the header row containing the descriptions.

      8. If you have a free Google account, you can save this into your own spreadsheet

      Reply

    5. Tex—thanks for this post. I own at lot of:
      National Rural Utilities Cooperative Finance Corp, cusip # 637432PB5, 7.125% coupon, UST 5 year reset , Uncallable, 9/15/53 maturity date, A3,BBB
      The 5 year T spread is 3.53%. Currently trading about $102.5 to $103

      Reply

      1. Whidbey, thanks for this extra info. More info about this particular issue, gleaned from the FWP at https://www.sec.gov/Archives/edgar/data/70502/000007050223000020/fwpsubordinatednotesmay2023.htm:
        1. the first reset date is 15 sep 2028, so it’s still paying a coupon of 7.125%
        2. Based on my reading of the FWP, it is in fact callable: “Optional Redemption: … The Company may, at its option, redeem the Notes in whole or from time to time in part, on any day during any Par Call Period at a redemption price in cash equal to 100% of the principal amount of Notes to be redeemed [plus, in each case, all accrued and unpaid interest on the Notes to be redeemed to, but excluding, such redemption date.]
        – where ‘Par Call Period’ is defined as “With respect to any Reset Date, including the First Reset Date, the period from and including the June 15 immediately preceding such Reset Date through and including such Reset Date.”
        – Meaning (again, if I understand correctly) that CFC has the option to call the notes from 15 jun 2028 to 15 sep 2028, inclusive.

        Reply

    6. Thank you Tex for a great list. Is there a way to identify which is preferred and which is a bond?

      Reply

      1. Hi MFZ, the third field from the right is “Maturity date.” It either has a date or says “Perpetual.” Perpetual means that it is a preferred without a fixed maturity date. If that field does have a date, it is some kind of bond. I do not recall seeing any “term preferreds” which would have a fixed maturity date, but it is possible.

        Once again, it is vitally important to verify this data plus fill in all of the missing pieces BEFORE making a buy.

        Reply

    7. just an FYI.
      these 7 are preferred stocks, so you get the lower tax rate for dividends.

      842400FU2
      281020AS6
      281020AT4
      816851BK4
      26441CBG9
      25746UDD8
      25746UDM8

      Reply

    8. Ahhhhhhhh nuts! What section did you post your original list, Tex? I thought I’d earmarked it for myself, but alas I’m not finding it….. Doesn’t seem to be in this Bond Discussion area I don’t think.

      Reply

      1. 2WR, my TVA friend, here is the verbatim original post from 4/12!
        **********************************************

        There has been some discussion about $1k face floating/variable interest rate bonds and preferreds. Here are a few that were offered for sale today 4/12. We all know there are many moving parts on variables including what the reference interest is, how was the change from Libor handled, what is the first date the interest can change, how often can it change, ad nauseum. . . .

        BLACK BOX WARNING: This list does NOT include all of the data you MUST have before deciding to purchase any of these. You absolutely, positively, MUST spend more time to make sure you understand exactly how each issue is structured. Not to mention having to guess how the company will proceed, i.e. do you forecast it will be called and when.

        The data I have included is:
        Company name
        CUSIP
        Current coupon yield, assumes price @ par
        Current yield based on latest ask price, which presumably you can buy the issue at, although the minimum quantity might be up to $250, plus some are 144a’s
        Base interest rate: SOFR, 3ML- 3 month LIBOR which means I did NOT trace how it has changed post Libor, ??= unknown
        Margin above the base is NOT included because I am not happy with the quality of my data, although you can calculate it reasonably well based on the coupon yield.
        Next call date or “continuous” which roughly means it can be called on ~ 30 day notice, i.e. it is past its first call date.
        Maturity date if it is a bond, perpetual if it is a preferred which might NEVER be called

        I did not attempt to make the data look pretty on this post, because it is let us say difficult. The data is setup for you to copy into a spreadsheet as a “CSV” file, then parse into columns.

        The list is sorted by highest current yield, so you should roughly assume the default/non-payment risk is highest at the top and decreases down the list.

        Header row

        Name,CUSIP,Coupon yield, current yield, Interest base, Call status, Maturity date,Moodys,S&P

        AGFC Capital Trust I,00846NAA5,7.325,11.78,??,Continous,1/15/67,B1,B
        Zions Bancorp NA,989701BF3,10.03,10.21,3ML,Continous,Perpetual,NR,BB+
        Zions Bancorp NA,989701BD8,9.402,9.98,SOFR,Continous,Perpetual,NR,BB+
        EnLink Midstream Partners LP,29336UAH0,9.701,9.75,SOFR,Continous,Perpetual,BA3,BB
        Southern California Edison Co,842400FU2,9.767,9.74,SOFR,Continous,Perpetual,BAA3,BB+
        Plains All American Pipeline LP,726503AE5,9.678,9.67,SOFR,Continous,Perpetual,BA2,BB+
        Energy Transfer LP,29273VAH3,9.596,9.61,SOFR,Continous,Perpetual,BA2,BB+
        First Citizens BancShares Inc/NC,31959XAA1,9.562,9.39,SOFR,1/4/27,Perpetual,BA1 ,NR
        JPMorgan Chase & Co,46625HJQ4,9.348,9.35,SOFR,5/1/24,Perpetual,BAA2,BBB-
        M&T Bank Corp,55261FAG9,9.178,9.14,3ML,5/15/24,Perpetual,BAA3,BB+
        Citizens Financial Group Inc,174610AP0,8.566,9.11,3ML,,Perpetual,BAA3,BB+
        Citigroup Inc,172967GR6,9.034,9,SOFR,5/15/24,Perpetual,BA1,BB+
        JPMorgan Chase & Co,48126HAA8,8.868,8.87,3ML,5/1/24,Perpetual,BAA2,BBB-
        Fifth Third Bancorp,316773CR9,8.692,8.86,SOFR,Continous,Perpetual,BAA3,BB+
        Fifth Third Bancorp,316773CM0,8.596,8.84,SOFR,Continous,Perpetual,BAA3,BB+
        JPMorgan Chase & Co,48124BAC9,8.818,8.82,SOFR,5/1/24,Perpetual,BAA2,BBB-
        Bank of America Corp,060505ED2,8.734,8.7,3ML,Continous,Perpetual,BAA2,BBB-
        TransCanada PipeLines Ltd,89352HAC3,7.778,8.64,SOFR,Continous,5/15/67,BAA3,BBB-
        Huntington Bancshares Inc/OH,446150AL8,8.455,8.63,3ML,7/15/24,Perpetual,BAA3,BB+
        Truist Financial Corp,89832QAB5,8.692,8.61,SOFR,6/15/24,Perpetual,NR,BBB-
        Enterprise Products Operating LLC,29379VBM4,8.573,8.58,SOFR,Continous,8/16/77,BAA1,BBB
        PNC Financial Services Group Inc/The,693475AM7,8.642,8.58,SOFR,6/1/24,Perpetual,BAA2,BBB-
        Bank of Nova Scotia/The,064159KJ4,8.208,8.57,SOFR,7/12/24,Perpetual,BAA3,BBB-
        Enterprise Products Operating LLC,29379VAN3,8.38,8.51,SOFR,Continous,6/1/67,BAA1,BBB
        Allstate Corp/The,020002BB6,8.506,8.48,SOFR,Continous,8/15/53,BAA1,BBB-
        Reinsurance Group of America Inc,759351AE9,8.255,8.47,SOFR,Continous,12/15/65,BAA3,BBB
        Morgan Stanley,61745VAB9,8.75,8.45,SOFR,12/15/25,Perpetual,BAA3,BBB-
        Goldman Sachs Group Inc/The,38148BAD0,8.436,8.42,SOFR,Continous,Perpetual,BA1,BB+
        PPL Capital Funding Inc,69352PAC7,8.236,8.25,SOFR,Continous,3/30/67,BAA2,BBB
        State Street Corp,857477BA0,8.129,8.11,SOFR,6/15/24,Perpetual,BAA1,BBB
        USB Capital IX,91731KAA8,6.595,8.11,SOFR,Continous,Perpetual,BAA2,BBB
        JPMorgan Chase & Co,48128BAD3,8.148,8.09,SOFR,5/1/24,Perpetual,BAA2,BBB-
        NextEra Energy Capital Holdings Inc,302570AW6,7.631,7.97,3ML,Continous,10/1/66,BAA2,BBB
        WEC Energy Group Inc,976657AH9,7.681,7.84,SOFR,Continous,5/15/67,BAA2,BBB
        Goldman Sachs Capital IV,381427AA1,6.37,7.35,SOFR,6/1/24,Perpetual,BA1,BB+
        BAC Capital Trust XIV,05518VAA3,5.99,7.19,SOFR,Continous,Perpetual,BAA2,BBB-
        Mellon Capital IV,58551TAA5,6.159,7.18,SOFR,Continous,Perpetual,BAA1,BBB
        Jpmorgan Chase Financial Co LLC,46646EX23,5.781,5.84,SOFR,Uncallable,11/3/45,A1,A-

        Reply

      2. 2wr,

        In reference to importing Tex the 2nd’s list, I use an Ipad and I think you may also? I could not find a way to “split text into columns“ in the Google Sheets app on an iPad iOS.

        If someone else knows definitively about this I would be happy to hear about it.

        Reply

        1. I’m a member of the Grid Generation – no Google Sheets, no spreadsheets of any kind. No Apple products either but I’m not sure that’s a Grid trait as well…. it’s hard to believe that even though I bot my first computer in 1981 (an IBM!) I’ve never used a spreadsheet. Go figure. Spread sheets remind me of calculus – the key is always setting up the equation correctly and it always seem to me to take longer to figure out how to do that than it did to think I could solve the problem another way….. Hey, maybe this is what I need AI for!

          Reply

          1. 2WR, I love my iPad, but yes, I am pretty much done learning anything new. So there will be no spreadsheet made on my end.

            Reply

          2. 2WR, important investing life lesson here for all of us. You can be in the investing Hall of Fame like 2WR, Grid and Warren Buffet WITHOUT having a Bloomberg Terminal and/or Excel spreadsheets. Something to think about. . .

            Reply

            1. Uh Oh, Tex! – You blew all your credibility with this bit of hyperbole but thanks anyway – I guess I can now go to bed and sleep well on my inflated ego and add Mike Lindell’s My Pillow (no politics intended) to the online auction ….. lol

              Reply

          3. 2WR my bro is 7yrs younger than me. He built my first computer around the same time you got your first one. Tried taking computer programming 3 times but the classes were over crowded and the teachers assistants were more interested in helping the gals. I use a spread sheet at work, but I keep a template for what I do and no idea what all the tabs are for. The formulas remind me of RPN they were using on the first HP hand calculators my friends had in high school.

            Reply

        2. My mac computer has a built in spreadsheet program called “Numbers”. A simple copy and paste of the text gives delineated columns.

          Reply

        3. I don’t use Apple but if I did I would connect to Sheets on the internet with a browser instead of using the app.

          Reply

  21. Shout out and thanks for Dick, Tex2 and all for F-F information.!!! You certainly deserve more than a steak dinner. I plan on researching these issues and will post any I find. Looking for candidates to convert to ROTH and these are normally great.
    A very gentle, gentle reminder to try and post in relevant topic headings. I usually check on $1K and Common sections frequently. Glad I didn’t miss these!

    Reply

      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)

        Reply

    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.

      Reply

  24. 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’.

    Reply

    2. 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

      Reply

      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.

        Reply

    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.

      Reply

      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.

        Reply

        1. Hey Dick,

          Tons of great ideas in your posts. Are you paying commissions when calling the trade desk? I can find this issue in Schwab (still says call the desk) and not at all in TD.

          Reply

          1. Yes, I believe there is a commission. I’m not sure how much exactly and might vary by bond. I think they’ll waive if you ask them. The phone number to Schwab fixed income is 877-906-4670.

            I think that Stanley Black & Decker bond only looks more attractive now that rates have crept up. FINRA shows a last price of $87.36. I’m holding a full position.

            Reply

  26. 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.

    Reply

  27. 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

    Reply

  28. 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.

    Reply

      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.

        Reply

    3. 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!

      Reply

        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.

          Reply

          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.

            Reply

            1. Maine,

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

              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.

                Reply

                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

                  Reply

            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.

              Reply

              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.

                Reply

  30. 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.

    Reply

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