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.

926 thoughts on “Bond Discussion”

  1. Two new BBB senior issues from Jeffries at Schwab:
    47233WFJ3, 6.0%, 12/21/2029, call 6/21/2026
    47233WFK0, 6.3%, 6/21/2034, call 6/21/2027

  2. Got an order in for a new Capital Impact Partners bond. Cusip is 14020AES9…due 6/15/2025….coupon of 5.75%…no call…pays quarterly

  3. ET busy today. Where/when can I find the fill-in-the-blank numbers?

    New senior $1000 notes:
    https://www.sec.gov/Archives/edgar/data/1276187/000119312524155631/d827551d424b5.htm
    Includes redemption of series A $1000 institutional preferred.
    “Upon the pricing of this offering and, if priced, the concurrent offering, we intend to issue a notice of redemption with respect to all of our outstanding Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units, liquidation preference $1,000 per unit, representing a limited partner interest in ET (the “Series A preferred units”). If this offering or the concurrent offering is not successfully consummated, we may not redeem any of the Series A preferred units.”

    New junior reset notes offering, probably $1000:
    https://www.sec.gov/Archives/edgar/data/1276187/000119312524155637/d841847d424b5.htm

    1. Of course I have a ton of the Series A.

      I got stopped out of the Bank of America $1000 floater too.

      I am running out of hidey holes…

  4. 838518AA6 from South Jersey Industries looks like it’s been trading with a YTM of 9.3%. It matures on 4/15/2031. I tried to pick some up earlier today but I guess Texans like me aren’t allowed to own it due to blue sky laws.

    1. Vanguard doesn’t show any state restrictions and I own it there (TX resident). I don’t see any restrictions in Fido either. Where do you see that?

      1. Schwab has this note:

        “Blue Sky Restrictions: This bond is not available to the legal residents of the following states/territories: Arkansas, American Samoa, Federated States of Micronesia, Florida, Illinois, North Dakota, North Marianas, Ohio, Texas.”

        I actually bought some through Schwab on a couple of previous occassions (while living in TX…I’m a long time resident). The person I spoke with at the bond desk pointed out the restriction.

        1. Schwab is pretty good about violating blue sky on munis also, meaning they do so with impunity while no other broker will sell me many of the new issues becz they aren’t blue sky’d in NV

  5. One of the largest gains for me has been the LUMEN bond. I have the 2025 debt ; YTM remains high. I am considering adding more. But credit has tightened so may wait for better entry.

    Also plan on looking at the PEMEX bonds later. With election market seems to think obtaining a super majority is risky. She has stated a top priority will be to refinance the 2025 debt wall.

    Give the reshoring from USA, I have a hard time believing MEX would nationalize or attempt such for PEMEX. But belief like hope is not a plan.

  6. I just bought Nat Rural Utility Coop currently floating at 8.511% coupon at $100.498. A3/BBB Cusip # 637432MT9 3 month sofr +26 bp +291bp
    currently callable since 4/30/23, maturity date 4/30/43 , paid quarterly

    1. Which broker? I don’t see any availability on Schwab or Fidelity. If you call the desk how many do you have to buy for them to show you an offering?

      1. Schwab—don’t know about size. I
        Guess 5 or 10. Just call the bond desk and ask

  7. I realize some of you are not a fan of these (essentially no-call protected) agency bonds and can prove the “why” mathematically speaking. I’m not necessarily advocating to run out and buy this one.

    But there is some value add here from a data perspective in terms of where “others” are seeing yields headed. Needless to say I was a little surprised when this new issue just popped up now as I believe during the yield panic peak fall 2023, the highest coupon landed was 7% range thus we are not too far away here:

    FHLB 6.625%
    06/03/2054 (Callable 9/3/2024)
    3130B1MU8
    AA+

    One other new issue agency worth mentioning this morning with a stunning 1 year call protection (and not an FHLB!) is this:

    Farm Credit System 6.00%
    06/05/2034 (Callable 6/5/2025)
    3133ERGE5
    AA+

    1. Theta, for 30 years I would rather buy a callable tax free housing bond yielding 4.8

  8. STWD 10.5 months notes available on many brokerage platforms for 6.5%+ YTM. Starwood gets a lot of press, including the negative press recently, but they are one of the best (maybe the best) run mREITs and ample corporate resources.

    4.75000% 03/15/2025 85571BAL9

  9. JPM Chase bond Cusip# 48130CMA0…due 11/22/2032…paying 5.4% semi annually…1st call 5/22/2028

  10. NEW Issues

    ->AGENCIES:

    FHLB 6.00%
    05/23/2029 (Callable in 3 months)
    3130B1LE5
    AA+

    FHLB 6.25%
    06/20/2034 (Callable in 4 months)
    3130B1MD6
    AA+

    FHLB 6.25%
    06/13/2041 Callable in 7 months)
    3130B1HJ9
    AA+

    FHLB 6.375%
    06/24/2044 (Callable in 4 months)
    3130B1LK1
    AA+

    ->JUNKY Side Corps:

    Service Properties Trust 8.375%
    06/15/2029 (Callable 6/15/2026)
    81761LAD4
    BB/B2

    Service Properties Trust 8.875%
    06/15/2032 Callable (6/15/2027)
    81761LAE2
    BB/B2

    ->INVESTMENT Grade Corps

    Bank of America Corp 5.55%
    12/03/2025 (Callable 12/3/2024)
    06055JEQ8
    A-/A1

    Ntnl Bank of Canada 5.50%
    05/28/2027 (Callable in 1 Year)
    63305LB36
    A/Aa3

    The Goldman Sachs Group 5.375%
    05/28/2027 (Callable in 1 Year)
    38151F3F8
    BBB+/A2

    Main Street Capital 6.50%
    06/04/2027 (Callable 5/4/2027)
    56035LAJ3
    BBB-/NR

    PROSPECT CAP CORP 7.00%
    06/15/2027 (Callable 12/15/2024)
    74348GSH4
    BBB-/Baa3

    Ally Financial Inc. 6.00%
    06/15/2027 (Callable 12/15/2024)
    02006DU82
    BBB-/NR

    Owens Corning 5.50%
    06/15/2027 (Callable 05/15/2027)
    690742AN1
    BBB/Baa1

    JPMorgan Chase & Co. 5.35%
    05/31/2028 (Callable in 1 Year)
    48133W5V6
    A-/A1

    F&G Annuities & Life 6.50%
    06/04/2029 (Callable 5/4/2029)
    30190AAF1
    BBB-/NR

    DOW CHEM CO. 5.05%
    06/15/2029 (Callable 12/15/2024)
    26054MFF3
    BBB/Baa1

    Verizon Communications 5.00%
    06/15/2029 (Callable 6/15/2025)
    92346MNH0
    BBB+/Baa1

    The Goldman Sachs Group 5.625%
    05/30/2031 (Callable 11/30/2025)
    38151F3D3
    BBB+/A2

    CITIGROUP INC. 5.55%
    05/30/2031 (Callable 11/30/2025)
    17290AMQ0
    BBB+/A3

    JPMORGAN CHASE 5.50%
    11/30/2032 (Callable 5/31/2026)
    48130CMF9
    A-/A1

    PROSPECT CAP CORP 7.50%
    05/15/2034 (Callable 11/15/2024)
    74348GSG6
    BBB-/Baa3

    Ally Financial Inc. 6.25%
    05/15/2034 (Callable 11/15/2024)
    02006DU74
    BBB-/NR

    Ntnl Bank of Canada 6.00%
    05/31/2034 (Callable 11/30/2025)
    63305LB51
    A/Aa3

    JPMORGAN CHASE 5.75%
    05/31/2034 (Callable 5/31/2026)
    48130CMR3
    A-/A1

    CITIGROUP INC. 5.65%
    05/31/2034 (Callable 11/30/2025)
    17290ACK4
    BBB+/A3

    Verisk Holdco LLC 5.25%
    06/05/2034 (Callable 3/5/2034)
    92345YAJ5
    BBB/Baa2

    EQUINIX EUROPE 2 FI 5.50%
    06/15/2034 (Callable 3/15/2034)
    29390XAA2
    BBB/Baa2

    Owens Corning 5.70%
    06/15/2034 (Callable 3/15/2034)
    690742AP6
    BBB/Baa1

    Elevance Health Inc. 5.375%
    06/15/2034 (Callable 3/15/2034)
    036752AZ6
    A/Baa2

    Jefferies Financial Group 6.00% STEP
    05/31/2039 (Callable 05/31/2028)
    5/31/2028, Coupon = 7.00%
    47233WER6
    BBB/Baa2

    CITIGROUP INC. 5.65%
    05/31/2039 (Callable 11/30/2026)
    17290ABP4
    BBB+/A3

    JPMORGAN CHASE 6.00%
    05/31/2044 (Callable in 2 Years)
    48130CME2
    A-/A1

    Elevance Health Inc. 5.65%
    06/15/2054 (Callable 12/15/2053)
    036752BA0
    A/Baa2

    DOW CHEM CO SR 5.65%
    06/15/2054 (Callable 12/15/2024)
    26054MFH9
    BBB/Baa1

    ->TREASURIES

    US Treasury BILL
    10/01/2024
    912797LK1
    YTM = 5.39%

    US Treasury 4.875%
    05/31/2026
    91282CKS9

    US Treasury 4.50%
    05/31/2029
    91282CKT7

    US Treasury 4.625%
    05/31/2031
    91282CKU4

  11. Two interesting ones:
    461070AU8
    Interstate power
    5.7% coupon
    Baa1/A-
    matures 2034, not callable until about two months earlier than maturity
    Slightly over par, ytm is about 5.5%

    037735DB0
    Appalachian power
    5.65% 2034, call 2034
    BBB+/Baa1

  12. I find it really interesting that the debt of Corebridge is more expensive than an annuity issued by the insurer for the same period.
    Corebridge is offering 3,5, and 7 year advisor annuities at 5.75, Their debt yields less than that.

    Insurer financial strength a+/ debt is BBB+.

    The annuity has first claim by a long shot

  13. If someone is looking for a monthly paying CD for income, Wells Fargo just issued a brokerage one effective 5/21 for 2 years at 5% and noncallable. I have maturing CDs next week, so “borrowed” from myself to buy today. I hate the 8 day lag, but I didnt want to spend the money that was laying around anyways.

    1. @gridbird, yep today at fido saw a few non-callable 2 yr cds at 5% threshold…didnt see if they were mo paying or not

    2. Bought some of that in the IRA on Monday. Have another big chunk coming due Friday, so need to put that money back to work soon.

    3. Just some information, would like to let older couples know about long term CD’S. Be aware that FDIC coverage ends after six months for a person on the CD if they pass away. In the case of a couple, the CD would still have coverage but limited to 250.000 for the surviving person. Just some information that the banks or brokerages likely would not tell you.

  14. NEW issues:

    Barclays PLC 5.50%
    05/20/2027 (2 year call protection)
    06745QR43
    A+/NR
    YTM/YTW = 5.50%

    Australian Unity Pro 5.05%
    04/16/2029 (NOT callable)
    961214FT5
    AA-/NR
    YTM/YTW = 5.05%

    Atlassian Corp 5.25%
    05/15/2029 (Not Callable until *4/15/2029*)
    049468AA9
    NR/Baa3
    YTM/YTW = 5.27%

    WEC Energy Group Inc. 5.00%
    05/15/2029 (Not Callable until *4/15/2029*)
    976656CQ9
    NR/A2
    YTM/YTW = 5.04%

    CenterPoint Energy 5.40%
    06/01/2029 (Not Callable until *5/1/2029*)
    15189TBG1
    BBB/Baa2
    YTM/YTW = 5.40%

    Las Vegas Sands Corp 6.00%
    08/15/2029 (Not Callable until *7/15/2029*)
    517834AK3
    BB+/Baa3
    YTM/YTW = 5.90%

    Jefferies Financial Group 6.50%
    11/16/2029 (1 Year call protection)
    47233WEQ8
    BBB/Baa2
    YTM/YTW = 6.50%

    Hasbro Inc. 6.05%
    05/14/2034 (Not Callable until *2/14/2034*)
    418056BA4
    NR/Baa2
    YTM/YTW = 6.10%

    Charter Communications Inc. 6.55%
    06/01/2034 (Not Callable until *3/1/2034*)
    161175CR3
    BBB-/NR
    YTM/YTW = 6.55%

    Agree LTD Partnership 5.625%
    06/15/2034 (Not Callable until *3/15/2034*)
    008513AE3
    BBB/Baa1
    YTM/YTW = 5.75%

    Reinsurance Group of America Inc. 5.75%
    09/15/2034 (Not Callable until *6/15/2034*)
    759351AS8
    A/Baa1
    YTM/YTW = 5.79%

    1. Theta, Love your lists. I know you stick with investment grade (IG) and it seems like a lot of companies are coming to the watering hole to dip their buckets while they can get rates from 5% to 6% As to IG Hasbro and CVS ? really?

      1. Charles M – Too funny. I concur. Well at this point, I’m seriously contemplating just adding full on junk as well to my lists. As far as CVS goes, I didn’t post every single one yesterday but they really went in a full debt issuance frenzy mode. They put out allot of duration varying floats yesterday.

        Out of the grocery list from this morning the one I was really excited to see were those basically noncallable 10 year RGAs. Getting a big piece of those is essential for a much needed slot in one of my ladders.

    2. Just looking at alternatives, I could buy a non commisionable 5 year guaranteed annuity at 6.05% from an insurer with Best rating of A-, whose 5 yr bonds are BBB and trading around that yield.
      With the annuity there’s a lot of capital and surplus backing up the purchase.

      dplfp.com
      click on MYGA marketplace

  15. NEW Issues:

    Bank of America Corp 5.75%
    05/16/2029 (Call protection 6 months)
    06055JEM7
    A-/A1
    YTM/YTW = 5.75%

    CVS Health Corp 5.4%
    06/01/2029 (Not Callable until *5/1/2029*)
    126650EB2
    BBB/Baa2
    YTM/YTW = 5.40%

    CenterPoint Energy 5.4%
    06/01/2029 (Not Callable until *5/1/2029*)
    15189TBG1
    BBB/Baa2
    YTM/YTW = 5.40%

    NMI Holdings, Inc. 6.00%
    08/15/2029 (Not Callable until *07/15/2029*)
    629209AC1
    NR/Baa3
    YTM/YTW = 6.05%

    CITIGROUP INC 5.90%
    05/16/2031 (18 month call protection)
    17290AC81
    BBB+/A3
    YTM/YTW = 5.90%

    CVS Health Corp 5.55%
    06/01/2031 (Not Callable until *4/1/2031*)
    126650EC0
    BBB/Baa2
    YTM/YTW = 5.60%

    Intercontinental Exchange Inc. 5.25%
    06/15/2031 (Not Callable until *4/15/2031*)
    45866FBA1
    A-/A3
    YTM/YTW = 5.20%

    Mastercard Inc 4.875%
    05/09/2034 (Not Callable until *2/9/2034*)
    57636QAZ7
    NR/Aa3
    YTM/YTW = 5.05%

    Consolidated Edison 5.375%
    05/15/2034 (Not Callable until *2/15/2034*)
    209111GH0
    A-/A3
    YTM/YTW = 5.40%

    CITIGROUP INC 6.00%
    05/17/2034 (18 months call protection)
    17290ACM0
    BBB+/A3
    YTM/YTW = 6.00%

    CVS Health Corp 5.70%
    06/01/2034 (Not Callable until *3/1/2034*)
    126650ED8
    NR/Baa2
    YTM/YTW = 5.71%

    Arkansas Power & Light 5.45%
    06/01/2034 (Not Callable until *3/1/2034*)
    29366MAF5
    A/A2
    YTM/YTW = 5.50%

    CITIGROUP INC 6.00%
    05/16/2039 (2 1/2 year call protection)
    17290A3S7
    BBB+/A3
    YTM/YTW = 6.00%

    CVS Health Corp 6.00%
    06/01/2044 (Not Callable until *12/1/2043*)
    126650EE6
    BBB/Baa2
    YTM/YTW = 6.15%

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